No news is good news. No China headlines, no tweets, and just like that the market is at the top of the range.
What’s not shown on the S&P cash index was a massive move lower during the Sunday trading session that overtook the range lows, only to find the market flat on Monday’s open.
This, so far, is classified as a failed breakdown setup. And when you see a failed breakdown, there is a tendency for the market to run to the other side of the range. Which is what is going on now.
As for trades… well, there’s a lot of things open. We’ve got a three day weekend along with this rally so you should see the value of these credit spreads start to drop off aggressively as we head into Friday’s trade.
Make sure to scale out! Once we get these positions cleared off the table we can eagerly await the next push in the markets.
Trade #1: ROKU
Yes, I’m looking at the strongest stock in th emarket right now. I think it has the potential for a blowoff top then a correction. We’re going to use seriously stretched prices because if I were to short right now, it would be very, very early.
Sell to Open ROKU Sep 175/180 Call Spread
Tier 1: Enter at 0.90, Exit at 0.30
Tier 2:Enter at 1.20, Exit at 0.50
Tier 3: Enter at 1.50, Exit at 0.70