Trade of the Week
ETF Sector Corner: Utility Group Building Basing Pattern into Strong Seasonality
Utilities Select Sector SPDR Fund (XLU) – This Sector SPDR is one of the most popular options for investors looking to gain exposure to the U.S. utilities sector, a corner of the domestic stock market known for relatively low volatility and relatively high...
Bull Put Spreads in Tech and Smartphone Leader Back at Large Support Forming Wedge
Apple (AAPL) has been dipping back into its 61.8% Fibonacci retracement support of 178.65 and now quite oversold as sentiment in the name gets bearish. Many expect this to breakdown and lead market lower, which while is possible is also not the likely path. Money...
Tech Giant Forms High Tight Flag with Bullish Gamma
Microsoft (MSFT) shares closed the week strong just above its new monthly value area resistance of 412.50 so holding above that can see a breakout to fresh highs as bullish gamma is in the name for this week and likely next with March OPEX nearing. The name has held...
Seasonal Stock Setup: Natural Gas Name Looking to Rebound into Strong Calendar Months
EQT (EQT) has a strong seasonal history in March and April with those two months being the best on the calendar going back a full 20 years of seasonal history. The Natural gas name has been up 13 of the last 20 years in March for average returns of +6.5% while April...
ETF Sector Corner: Small Cap Cash Cows Nearing Breakout to Highs
Pacer US Small Cap Cash Cows 100 ETF (CALF) – CALF provides access to the US small-cap space with a twist. Starting with the S&P Small Cap 600 Index, CALF screens out financial companies with the exception of REITs and companies projected to have negative free...
Bull Put Spreads in Metals Giant Coming off Support Rebound
Freeport (FCX) has been dipping back into its 200-day MA support since the start of the year at about 38 and now looking to rebound from there with metals having a solid week last week. FCX also seeing a bull MACD cross and a close back over 39.50 likely gets upside...
High Tight Bull Flag Setup in Top Chip Name
Advanced Micro (AMD) shares are volatile but forming a coiled squeeze pattern near highs after its earnings report weakness three weeks ago pulled back to the rising 21 EMA and held the YTD VWAP support near 165. Last week the stock slipped below but NVDA saved the...
ETF Sector Corner: Materials Group Gearing up For Multi Year Breakout into Strong Seasonality
Materials Select Sector SPDR Fund (XLB) – This ETF is one of several funds offering exposure to the U.S. materials sector, a corner of the market that may be appealing for investors looking to gain indirect exposure to commodity prices through the stocks of companies...
Bull Put Spreads in Casino Name Pulling Back to Long Term Support
MGM Resorts (MGM) has been dipping back into its rising 55-week MA and 2023 yearly POC support near 42.50 after its earnings report saw profit taking as the stock was already up strong into 47.50 and up near +15% since the January low. Likely a normal pullback that...
Quick Weekly Option Trade Setup in Tech Giant
IBM (IBM) shares are bull flagging near highs since its strong earnings report and the earnings drift setup continues to be in play after the larger than expected move on its report has forced dip buying since. IBM has about a 4 point expected move for the week so it...