Less than two weeks ago I told you my favorite buy was Devon Energy. Since then the stock is up 10% and the call options were dirt cheap, creating some very nice gains. I am continuing to hold here.

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In the broader market we have PPI and FOMC to close the week. Thursday- Friday looks like the market will pause the way I see the flows right now. A close on SPX below 6000 on Friday would make some large option sellers happy. Now it would be nice if this was 100% reliable, but reality is while big boy call option shorts do provide an edge, it is more like a 60/40 edge. Still enough to pay attention to, just don’t think the big boys are never wrong, because they also definitely get it wrong sometimes.

Past that I still see June as a buy the dip month, so a dip will be welcome for higher prices into the end of the month in the general stock market.

Thanks,

Joe

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