Oil’s at its Highest Price in 7 Years

Mark’s Watchlist

Over 1,000 flights canceled, a COVID-19 pill, and oil at its highest price in seven years – we’ve got a lot to cover today.

1. Southwest Airlines Co. (NYSE:LUV)

The airlines found their way onto my Watchlist at the end of last week. On Sunday, however, LUV had a massive system outage that canceled thousands of flights – and sent the stock over 3.5% lower on today’s open.

LUV could get smoked today. But I’m still bullish on this airline in the long run – meaning this could be a decent chance to buy the dip.

2. Merck & Co. Inc. (NYSE:MRK)

Pharmaceutical company MRK is seeking emergency authorization of its antiviral COVID-19 pill. This would be the first antiviral COVID treatment in pill form, and its authorization could shoot the stock higher.

Remember Pfizer and Moderna after their vaccines were given emergency approval?  We could have another pharmaceutical high-flier on our hands here.

3. Energy Select Sector SPDR Fund (NYSEARCA:XLE)

Oil is now at over $81 a barrel, its highest price in the past seven years. From here, the question is how high can names like Exxon Mobil Corp. (NYSE:XOM) and Chevron Corp. (NYSE:CVX) go?

XLE is already up 50% year-to-date. My take? All of these oil and energy names are going a lot higher from here. “To the moon,” as they say…

The Biggest Earnings Season to Date

This week’s the week – earnings season is here.

On Wednesday, October 13, JPMorgan will kick off third-quarter earnings season before opening bell.

And after opening bell (like, immediately after, at 9:30 AM sharp) – Kenny Glick is going LIVE to show you how to use his top indicator to trade it.

See, this earnings season isn’t like what we’ve already seen this year. The 30 days from mid-October to mid-November are actually the most profitable of the year.

And according to Kenny, this could be the biggest earnings season to date.

Wednesday’s live event, VWAP Locked & Loaded, is free to attend.

Sign up now and reserve your spot right here!

Today’s Impact Money Trade

I saw a 32,500-contract trade hit the radar today – in the form of a call spread on Geo Group Inc. (NYSE:GEO):

Click To Enlarge

Now, I’m not necessarily interested in piggy backing this trade. But it caught my eye for a different reason.

GEO is an REIT that operates private prisons. For obvious reasons, this isn’t exactly a loved industry. So it’s interesting to see such a big-money trade taking a shot on the REIT going higher.

 

VIX Traffic Light

Our VIX light is still yellow today – but we’re teetering on red. The VIX futures curve is still very flat, and market volatility is still relatively high despite its drop on Friday.

Before our light changes color, we need to see the market take a breath.

The end of this week marks the monthly options expiration, which can bring volatile moves in the broader market. Be sure to check back tomorrow to see where our VIX traffic light goes from here.

 

Remember… earnings season starts this week. And Kenny’s not the only one going live to show you how to trade it.

I’m hosting a live earnings trading series – and it starts this week on Thursday at 2PM:

But this series is for members of the Profit Revolution only.

Learn how you can join – and catch all three of my live earnings sessions – by giving our team a call at 877-212-9163.

Until tomorrow,

Mark Sebastian

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