After the Monday gap down, things have settled down a bit and buyers stepped up pretty well.

Now the current level of the market (2350 on the ES Futures) is a pretty key level we should watch. It was big support from earlier this month, and coincides with a few other technical levels– the 20 day moving average, the rising channel we broke out of in Feb, and it’s about a 50% retracement.

What’s key here is the nature of price action around this level. Simply put, the longer under this level the higher the odds we see another leg lower. And if the market gets enough steam to clear it then buyers are back in control and the uptrend should resume.

We’re coming into earning season which will bring a little more volatiltiy into play. At the time of this writing LULU is off 20% from bad numbers. Hopefully this kind of volatility will stick around in a lot of stocks as it affords us very nice spread sale opportunities.

Also, make sure to go through the newsletter archives to see all current trade setups.

Trade #1: FDX

Stock sold off hard on earnings, tested support for the 3rd time and is retracing back up on lower volume. I want to see a break underneath that level and a move to 180 for some put spread sales.

Trade Setup

Expected Price: 180

Sell to Open FDX May 170/165 Put Spread

Tier 1: Open at 0.80, Close at 0.30

Tier 2: Open at 1.10, Close at 0.80

Tier 3: Open at 1.40, Close at 1.10

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

Full Time Profits, March 30th 2017 – FDX

Trade #1: FDX

Disclaimer