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Full Time Profits, June 18th 2019 – HD, FB

June 18, 2019 By Steven Place

Before today’s breakout, the past 5 days have been a real snoozer. Boring markets tend to resolve bullishly, and that’s what we’re seeing today.

This price action makes sense. After a quick push to 2730, the markets jammed back above 2800 and retested the upper end of the range. We saw a few failed pushes higher, which led to a move under the range.

This is the nuanced part of it… there wasn’t any downside followthrough. The market just hovered around the 2900 level with a sharp decrease in price movement. That kind of price action leads to upside.

And that’s what we’re seeing today. The trade setups we’re looking at are biased to the downside, yet we need to respect that the current structure of the market is pretty bullish.

A loss of 2900 and actual downside followthrough would change that trade thesis.

Trade #1: HD

HD is overbought headed into resistance. Expect a pullback or sideways action.

Trade Setup

Expected Price: 207.89

Sell to Open HD Jul 215/220 Bear Call Spread

Tier 1: Enter at 1.03, Exit at 0.53

Tier 2: Enter at 1.33, Exit at 0.83

Tier 3: Enter at 1.63, Exit at 0.93

Stop loss on 30 minute close above 215.30

Trade #2: FB

Similar structure as HD– it’s overbought and As it heads into the April pivot highs I like scaling in to a short setup.

Trade Setup

Expected Price: 195

Sell to Open FB Jul 210/215 Call Spread

Tier 1: Enter at 0.60, Exit at 0.10

Tier 2: Enter at 0.90, Exit at 0.40

Tier 3: Enter at 1.20, Exit at 0.70

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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