We are undergoing a massive rotation right now.
Tech stocks are getting blown up. On Friday, there was a mini-flash crash in AMZN and a few other stocks. There were a couple areas that got hit early, then the profit taking came on pretty aggressively. Honestly, it felt like a tech fund was being liquidated.
I expect continued volatility in the tech space, but right now it isn’t spilling over anywhere else. Financials are still looking good, and small cap stocks are set to breakout.
Trade #1: GOOGL
Looking for a pull into earnings support, along with the rising 50 day moving average.
Sell to Open GOOGL Jul 860/855 Put Spread
Tier 1: Open at .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
Trade #2: CRM
Looking for a pull into major pivot levels in the low 80’s.
Expected Price: 82.50
Sell to Open CRM Jul 77.50/75 Put Spread
Tier 1: Open at 0.35, close at 0.15
Tier 2: Open at 0.50, Close at 0.35
Tier 3: Open at 0.65, Close at 0.50