Market is undergoing a rotational, time-based correction. Unless we lose 2400, overall trend remains in tact.
There’s still more weakness in the Nasdaq 100, and I am holding out hope that we see further weakness continue there. We’ve seen 134 days in a row where the Nasdaq has closed above its 50 day moving average. This streak is an all-time record. It’s possible we just go sideways and vol stays low but I’m making offerings to the market gods that we get a little more selling in tech.
Trade #1: CELG
Massive volatility pivot in biotech over the past two weeks. I’m expecting trend continuation, after a small pullback.
Expected Price: 131
Sell to Open CELG Aug 120/115 Put Spread
Tier 1: Enter at 0.70, Close at 0.50
Tier 2: Enter at 1.00, Close at 0.70
Tier 3: Enter at 1.30, Close at 1.00
Trade #2: CAT
Looking for a pullback into the 50 day moving average.
Expected Price: 101.89
Sell To Open CAT Aug 92.50/90 Put Spread
Tier 1: Enter at 0.35, Close at 0.15
Tier 2: Enter at 0.50, Close at 0.35
Tier 3: Enter at 0.65, Close at 0.50