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Full Time Profits, June 27th, 2019 – MSFT, SHOP, V

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Markets are taking a breather right around all time highs, and so far the pullback has been benign.

We’ve got G20 this weekend and there’s rumors of trade resolution with China, and a rate cut into July is all but confirmed by the Federal Reserve.

All of the narratives that led the market to test 2700 seem to be resolving, and with earnings season coming up in a few weeks, I would not be surprised if there is an anticipatory run into earnings and the Fed.

My main focus is on the strongest stocks in the market that are undergoing a pullback. These high flyers can easily see a second leg lower to flush out the early dip buyers, and that’s what I want to take advantage of.

Trade #1: MSFT

Looking for a pullback to breakout level and a move to the 20 and 50 day moving averages.

Trade Setup

Expected Price: 130.55

Sell to Open MSFT Jul 125/120 Put Spread

Tier 1: Enter at 0.70, Exit at 0.20

Tier 2: Enter at 1.00, Exit at 0.50

Tier 3: Enter at 1.30, Exit at 0.80

Trade #2: SHOP

SHOP went parabolic and gave up the past months’ gains on a swift move lower. I want to see a second push to horizontal support and the rising 50 day moving average.

Trade Setup

Expected Price: 272.40

Sell to Open SHOP Jul 250/245 Put Spread

Tier 1: Enter at 0.80, Exit at 0.30

Tier 2: Enter at 1.10, Exit at 0.60

Tier 3: Enter at 1.40, Exit at 0.90

Trade #3: V

I’m expecting a pullback to breakout and a test of the rising 50 day moving average.

Trade Setup

Expected Price: 165

Sell to Open V Jul 160/155 Put Spread

Tier 1: Enter at 0.70, Exit at 0.20

Tier 2: Enter at 1.00, Exit at 0.50

Tier 3: Enter at 1.30, Exit at 0.80

 

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