No new information here since the last newsletter. The market is chopping around, had a little volatility post FOMC minutes, but other than that it’s more statistical noise. It’s very possible that we continue to see that kind of price action until we get new fundamental catalysts surrounding earnings.
Keep an eye out on some of the pending trade alerts. JPM looks ready to trigger, and CAT already has.
Trade #1: QCOM
A combination of a pullback to 20 day moving average, and a gap fill.
Expected Price: 72.23
Sell to Open QCOM Nov 67.50/65 Put Spread
Tier 1: Enter at 0.44, Exit at 0.19
Tier 2: Enter at 0.59, Exit at 0.34
Tier 3: Enter at 0.74, Exit at 0.49
Trade #2: DIS
DIS is rallying hard into key resistance, and while I think you can get away with selling some call spreads against that level, a simpler and less risky bet would be to look for a retracement of the most recent move.
A 50% retracement would coincide with a rising 50 day moving average as well as the previous pivot levels from September. I want to start scaling in just a bit above that.
Expected Price: 114
Sell to Open DIS 110/105 Put Spread
Tier 1: Enter at 0.94, Exit at 0.54
Tier 2: Enter at 1.24, Exit at 0.74
Tier 3: Enter at 1.54, Exit at 1.04