Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT) and Intel (INTC).

All four will report tonight and they make up 20% of the Nasdaq by weight (and AAPL, who are the rest of the Nasdaq that counts, reports on 11/2) so it’s do or die for the index that’s up 25% since the election but that’s still only HALF of the move the FAANG stocks have made (Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and GOOGL), who are up 50% as a group since last November.

It’s truly a market gong wild and we made some lovely profits on our shorts yesterday, nailing the move oil, as we had said to you in the morning Report:

Meanwhile, in our quest to join the Top 1%, we shorted Oil (/CL) Futures again at $52.50 and the EIA Inventory Report is at 10:30, so that will be fun.  We have Gasoline (/RB) shorts to at about $1.72 avg but they spiked to $1.738 overnight – so a rough ride.

Oil fell to $52 and that was good for gains of $500 per contract while Gasoline hit the $1.70 mark, which was good for gains of $840 per contract and then it bounced right back to $1.735 – so we shorted it again in our Live Trading Webinar but this time, we went with next month’s /RBZ7 contract at $1.686 for our Webinar Trade (and you can see our volume spike on the chart!).  This morning, in our Live Member Chat Room, we used our 5% Rule to set goals for a pullback at $1.63, which would be a better than $2,000 per contract gain.  

While we usually don’t share trade ideas with cheapskate readers during earnings week, the following trade is such a gift I simply have to tell you about it.  Barrick Gold (ABX) is our favorite gold company and we have them in all of our portfolios but, as an earnings play, I sent out a Top Trade Alert to our Members yesterday afternoon with a trade we discussed in our Live Trading Webinar:

ABX – In the Webinar we decided 50 2020 $15 ($3.45)/$22 ($1.35) bull call spread at net $2.10 ($10,500) and 25 short $15 puts at $2.20 ($5,500) for net $5,000 on the $35,000 spread was an excellent trade into earnings as we’re not worried if they go lower as we’d be happy to buy more and, if they pop, you’ll be right in the money with $30,000 (600%) upside potential.