Jim Lebenthal

He disagrees that this is a large-cap tech rally. Energy, financials, materials and industrials have been leading in the last 3 weeks, instead. In the first quarter this year, the FAAANGs stagnated or dipped, like Amazon and Apple, while the market rallied overall. Delta is the most important factor in the market, but Delta has clearly peaked in the U.S. and globally. This means people are coming out again--flights are way up as well as hotel room rates in Vegas, up double-digits vs. 2019. Also, people are returning to work. There's still a lot of unclogging in the supply chain to come, but it is gradually improving, based on ships anchored off Los Angeles.

CLF made a deal today to buy Ferrous Processing. CLF has been turbulent, but its long-term trend remains intact. This deal secures a source of scarp metal for CC, which they can turn into steel--so this is a strategically important deal. This is the future of steel--of making steel out of scrap metal using electric furnaces. Steel is pricey and will come down eventually, but CLF is making money hand over fist, beacuse they buy cheap raw materials, but sell expensive end products. Also, CLF is delevering. Watch for their free cash flow when they report in a few weeks.

He likes the two upgrades today. This reminds him of Nike four years ago which he missed out on. Starbucks' 2022 PE is 29x. Investor sentiment remains quite good. As long as Starbucks doesn't stumble in execution, their PE will rise. Their customer experience is amazing.

This will breakout from $20. There's been a lot of activity in the debt market, a tailwind. They just announced a president for Sofi Bank, gives a little corporate confidence. Stong fundamentals and technicals. He targets deep into the $20s.

He added to this on the way down over a month ago, around $80. He has enough now. This is such a cheap call option on China, about 10% of their enterprise value. Rather, the value is in the U.S. operations which is doing gangbusters. Las Vegas room rates are 65% higher than in 2019. Shares are popping 5% today on news that Jim Cramer has bought shares.

He likes it. On days, oil stocks could soar or slide. Watch the last 30 minutes of trading. The trend is clearly higher on oil stocks.

It rallied 25% earlier this year then consolidated. His pick of the day.