Trade of the Week
ETF Sector Corner: High Quality Small Cap Basket Triggering Monthly Breakout
iShares Core S&P Small-Cap ETF (IJR) – This ETF is linked to an index which tracks the performance of small cap U.S. stocks. Compared to the 2000 different stocks in the Russell 2000 (IWM) this ETF is more concentrated with higher quality small caps and thus...
Bullish Open Interest in Apparel Name Seen Bottoming
Nike (NKE) has more than 20,000 August $75 calls bought in open interest and the recent move to fresh lows came with a bullish RSI divergence on the daily and the last two weekly candles with signs of seller drying up. Trade to Consider: Long NKE September $75/$85/$90...
Weekly Calls in Software Bull Flags Set-Up
Oracle (ORCL) one of the healthier set-ups and continues to see bullish flows overall while likely sees some movement this week with Amazon and Microsoft both reporting, potential to clear this nice bull flag, or at least retest the resistance.
Bull Put Spreads in Semi into Sector Washout
ASML Corp (ASML) is a high-quality Semi with shares down 12.5% in a month after two sharp weeks of selling across the sector but hitting AVWAP off the 2023 lows and its 55-week EMA last week, also bouncing at a key volume node with a big pocket below $860 back to...
Bull Put Spreads in Credit Card Giant Forming Bull Wedge Near Support
Mastercard (MA) has now pulled back to its 55-week MA the past few weeks at 430 which is also a key VPOC support and bounced from that level to close back over 440 as it rounds out a bullish falling wedge pattern since the March peak. MA likely has minimal downside...
Bull Flag Setup for Quick Weekly Option Trade in EV Name
Rivian (RIVN) shares of the EV name are holding up well and forming a bull flag since pulling back into the 8 day EMA last week from a high near 19 and continues to show relative strength since the VW news late last month. Potential to see the stock bounce off this...
Seasonal Stock Setup: Specialty Retailer Focused on Value Nears Highs into Back to School
Ross Stores (ROST) has been climbing higher since its large earnings gap up in late May and seeing that earnings drift move play out as it nears a breakout now to all time highs into the more bullish seasonal part of the calendar. ROST has strong support near the 145...
ETF Sector Corner: Mid-Caps Set for Lift Off into Catch Up Rotation Trade
iShares Core S&P Mid-Cap ETF (XLF) – This ETF is one of several ETFs available that offers exposure to mid-cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to...
Bull Put Spreads in Lagging Entertainment Leader Back at Support
Disney (DIS) has now pulled back to its 61.8% Fibonacci retracement at 96 from the entire rally of October through April and presents a lot of value at these levels if patient with put selling or bull put spreads as the upside risk to reward is skewed positive for a...
Quick Upside Trade for Semi Name with Gap Fill Potential
Micron (MU) shares have held up well since the earnings dip as they never closed below monthly value support of 130 even with last weeks rotation testing that level but bouncing Friday. July expiration has a lot of bullish gamma for the name, along with other Semi...