The market, for now, is holding 2800.
Let’s keep it simple here. Facebook earnings spooked a good amount of investors, which led to weakness in tech overall.
Facebook was sooooo last week. Now AAPL reported earnings, and they finally hit that $1T mark.
The reaction to earnings are driving changes in sentiment, which are leading to strong price reversals.
2800 is a good pivot level to watch. The longer we hold above it, the higher the odds we roll higher. Lose it and I’d expect a deeper pullback here.
For now, let’s be prepared in case some of these tech names pull in a little more.
Trade #1: AMZN
Pretty hard failed breakout after earnings. This stock could just jam higher into 2000 (psychological magnet), yet I want to be prepared in case it heads lower. The gap fill prior to the most recent earnings run should do the trick.
Expected Price: 1710
Sell to Open AMZN Sep 1580/1570 Put Spread
Tier 1: Enter at 1.70, Exit at 1.00
Tier 2: Enter at 2.30, Exit at 1.30
Tier 3: Enter at 2.90, Exit at 1.90
Trade #2: CRM
Short term trend is broken, looking for a test of the June pivot level.
Expected Price: 131
Sell to Open CRM Sep 120/115 Put Spread
Tier 1: Enter at 0.75, Exit at 0.25
Tier 2: Enter at 1.35, Exit at 0.75
No Tier 3 (Earnings)