“Markets rallied on French election outcome.”
Think about it… how absurd does that really sound?
Earnings are the important thing here. While some of the large tech names haven’t reported yet, they are rallying hard into those earnings events.
That, combined with a flush in bonds, is helping support the markets right now. Until we see a loss of 2370, we need to assume the overall trend will continue.
The best setups I see are relative strength stocks trading near highs.
Trade #1 NFLX
Trade Setup
Expected Price: 151
Sell To Open NFLX Jun 140/135 Put Spread
Tier 1: Open at 0.70, Close at 0.20
Tier 2: Open at 1.20, Close at 0.70
No Tier 3
Stop Out On Close Under 135
Trade #2: V
Trade Setup
Expected Price: 90
Sell To Open V Jun 87.50/85 Put Spread
Tier 1: Open at 0.40, Close at 0.10
Tier 2: Open at 0.65, Close at 0.409
No Tier 3
Stop Out On Close Under 87.50