Markets Live Recap: Our Experts Cover Federal Stimulus, Oil, Gold, and Earnings

This morning, the U.S. Senate passed a $484 billion relief package that the House of Representative is expected to approve on Thursday.

Three-hundred and seventy billion dollars is intended for small businesses, $75 billion will be for hospital relief, and $25 billion will be used to expand coronavirus testing.

Oil was up about 20% and stocks rebounded on the day, with the S&P 500 closing up about 2.5%.

But it was also interesting to see gold up 3% on the day.

Here's what our experts - Chris Johnson, Tom Gentile, D.R. Barton, Jr., and Shah Gilani - think about the stimulus, oil, gold, and stocks during earnings season.

Chris Johnson (8:45 a.m. EDT)

  • Chris pointed out that oil traders are gearing up for another volatile month as demand issues continue to worsen.
    • The oil trade needs to be isolated for the short-term outlook. And if you're a subscriber to Chris' premium Night Trader service, you can see the oil trades he's placing in his portfolio.
  • As far as earnings, Chris is bullish on Chipotle Mexican Grill Inc. (NYSE: CMG) with a $900 price target. He's bearish on Netflix Inc. (NASDAQ: NFLX) with a $380-$400 price target. And he's neutral on Snap Inc. (NYSE: SNAP) with a $15-$16 price target.
  • Chris still thinks investors should have plenty of protection in their portfolios.
    • And his No. 1 options trade right now is still to buy the Oct. 16 2020 SPY 260 puts trading for about $20.

Tom Gentile (11 a.m. EDT)

  • Tom covered gold, which is up on the latest stimulus news from the Fed today.
    • Typically, gold goes up when the market is down. But Tom thinks gold was up today because investors are beginning to realize that dollars are devaluing relative to gold with each additional stimulus the government pumps into the system. Tom still thinks gold is one of the safest plays today.
  • Tom revisited Netflix after earnings, and he gave three ways to play it with options for around $500 each.
  • Tomorrow, Tom is going to extensively cover Inc. (NASDAQ: AMZN) and what to do ahead of its earnings report on May 1.

D.R. Barton, Jr. (1:30 p.m. EDT)

  • D.R. covered Facebook Inc. (NASDAQ: FB) on his live stream today.
    • He likes the stock and thinks Facebook Pay will be very successful. This feature will let Facebook users send money to one another directly, much like Paypal Holdings Inc.'s (NASDAQ: PYPL) Venmo app. Don't buy FB stock today though since it's up 7%. Wait for a pullback around $170 and buy then.
  • D.R. likes Visa Inc. (NYSE: V) and Mastercard Inc. (NYSE: MA) at current levels. He thinks you could buy both of them and hold them for the long term for above average market returns.
    • In the short term, D.R. likes the May 22 vertical debit spread $167-$170 for about $1.25. You can get 2x upside, but put a stop loss order in 40% below your order price.

Shah Gilani (3:45 p.m. EDT)

  • Shah revealed that the Dow Jones Industrial Average has moved a total of 28,675 points in the last 30 trading days.
    • The Dow was up 14 of those days, moving a total of 59 percentage points (averaging +4.2% per day).
    • The Dow was down 16 of those days, moving a total of 71 percentage points (averaging -4.4% per day).
  • The point being, this market is incredibly volatile. It's unprecedented, and Shah thinks investors should be hedging accordingly.
    • He recommends using options to buy volatility, buying gold, and keeping a cash reserve in case we retest the lows made last month.

Catch us tomorrow - starting LIVE again at 8:45 a.m. EDT with Chris Johnson, right here.

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