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Full Time Profits, September 28th, 2017 – AMZN, CAT, NFLX

September 28, 2017 By Steven Place

It has been a tale of two tapes.

First, take a look at the S&P 500 chart above. This is the lowest volatility recorded. Ever. Sideways action, barely any movement.

Yet if you look at the energy sector (XLE), it’s been on a massive tear.

If you look at some of the large cap tech stocks, they been hammered on a pre-earnings shakeout.

And then you have the Russel 2000 Index. Which just had a massive move after it has already broken out.

This market correction is time-based and rotational. And boy, is that some rotation.

Trade #1: AMZN

After a failed breakout over 1,000, AMZN continues to trade at the lower end of its range. When a support level is tested multiple times in a short period, odds are we see a breakdown. I’m looking for 910-900 to act as the magnet and next support level.

Trade Setup

Expected Price: 910

Sell to Open AMZN Nov 840/835 Put Spread 

Tier 1: Enter at 0.80, Close at 0.20

Tier 2: Enter at 1.10, Close at 0.40

Hold off on Tier 3 as we may need to roll before earnings.

Trade #2: CAT

Simple bet here, looking for a pull into 120 to retest some prior pivot levels.

Trade Setup

Expected Price: 120

Sell to Open CAT Nov 110/105 Put Spread

Tier 1: Enter at 0.60, Close at 0.10

Tier 2: Enter at 0.90, Close at 0.30

Tier 3: Enter at 1.20, Close at 0.80

Trade #3: NFLX

Another tech stock that is weak– look for a test of recent range lows.

Trade Setup

Expected Price: 165

Sell To Open NFLX Nov 145/140 Put Spread

Tier 1: Enter at 0.80, Close at 0.20

Tier 2: Enter at 1.10, Close at 0.40

Hold off on Tier 3 as we may need to roll before earnings.

Disclaimer

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

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