Markets continue to consolidate in an ever-tighter range. You’d think that some of the catalysts from last week would truly affect the markets, right? We had Fed minutes come out and (more) US interventions in Syria. But when it comes down to it, we’re still in balance. Buyers and sellers have hit equllibrium for two weeks now.
There’s not much to be predictive about here… we need price to give us the signal. A close above 2375 is bullish, a close under 2325 is bearish. Anything in between is statistical noise.
Trade #1: GOOGL
The stock has made a lower high and is below it’s major moving averages. If this continues to stay weak, then look for a stop run under 820 and a move to 810. Into that level is where I want to get long.
Expected Price: 810
Sell To Open GOOGL Jun 730/725 Put Spread
Prices TBD. Options market is too wide to get accurate pricing.
Trade #2: IBM
This is a carryover from a previous newsletter, but I need to issue different trade parameters as earnings is coming up.
Expected Price: 170
Sell to Open IBM Jun 160/155 Put Spread
Tier 1: Open at .87, Close at .37
Tier 2: Open at 1.17, Close at .87
No Tier 3 Until After Earnings (Apr 18)