We’ve seen a monster run in the S&P, helped along by tech and the semiconductor sector going absolutely bonkers to the upside. I think we’re due for a pullback and retest of the prior resistance and the anchored VWAP from the most recent swing lows right around 4550.
Now if we do get a pullback, everyone will say it’s the end of the world and so on… we just want to be prepared if/when it happens.
Not much from me today in terms of macro or other in depth analysis, as it’s not exactly needed right now. If we get the pullback we want then we’ll put on some risk in these mega-cap tech names. And we’ve got one new setup ready to go today.
Trade #1: AMD
This is AMD, but it’s tied to NVDA which reports earnings this week. If we get some profit taking, I’m looking for a gap fill and a pullback into the swing AVWAP in the high 120s. Now that’s a big ask, so I am willing to start a little higher than that to get a fill.
Expected Price: 131
Sell to Open AMD 21Jan22 120/115 Put Spread
Tier 1: Enter at 1.5, Exit at 0.9
Tier 2: Enter at 2.1, Exit at 1.52
Tier 3: Enter at 2.7, Exit at 2.05
Stop Out If Close Under 119.89
Trade #2: CELH
Celsius is getting smoked on earnings, and it’s very oversold in the context of a longer term uptrend. I’m expecting the prior range to attract previous buyers.
Expected Price: 76
Sell to Open CELH 21Jan22 60/55 Put Spread
Tier 1: Enter at 1, Exit at 0.32
Tier 2: Enter at 1.4, Exit at 0.68
Tier 3: Enter at 1.8, Exit at 0.9
Stop Out If Close Under 59.89
Trade #3: MSFT
Looking for a rug pull in MSFT into the swing AVWAP.
Expected Price: 325
Sell to Open MSFT 21Jan22 300/295 Put Spread
Tier 1: Enter at 0.8, Exit at 0.08
Tier 2: Enter at 1.12, Exit at 0.34
Tier 3: Enter at 1.44, Exit at 0.44
Stop Out If Close Under 299.89