![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/06\/img_5b2b916c192ca.png\")
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After coming up to test the 2800 resistance, the market has been pulling back over the past few days.<\/p>\n
“The market” here being the S&P. That’s a touch misleading.<\/p>\n
See, market correlations have again gone to the floor. Some areas are seeing continued weakness… think industrials due to the “trade war” and large-cap financials.<\/p>\n
Yet if you look at large cap tech… monster moves. NFLX up 30% over the past month. FB and GOOGL finally breaking out. Very little downside volatility there.<\/p>\n
And smallcaps have been on a tear. The Russell 2000 index has seen its best rally this year and doesn’t show signs of slowing.<\/p>\n
So when we look at the market pulling back… it’s really been a sideways, rotational correction. Like we expected.<\/p>\n
Right now the pick-money-off-the-ground setups seem to be tech stock pullbacks. From there, I’ll look to play potential capitulation in BA and Gold.<\/p>\n
![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/06\/img_5b2b9480877ea.png\")
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The stock probed at higher prices and finished the day at the lows. This is a bearish reversal candle. Look for an extension lower to tag a gap fill, trendline support, and moving average support.<\/p>\n
Trade Setup<\/strong><\/p>\n Expected Price: 134.24<\/p>\n Sell to Open CRM Aug 125\/120 Put Spread<\/strong><\/p>\n Tier 1: Enter at 0.65, Exit at 0.15<\/p>\n Tier 2: Enter at 0.95, Exit at 0.45<\/p>\n Tier 3: Enter at 1.25, Exit at 0.75<\/p>\n I’m expecting just a small pullback from this name. Unlike CRM there wasn’t a hard reversal during the day’s auction and will most likely hold its bid longer.<\/p>\n Trade Setup<\/strong><\/p>\n Expected Price: 141.50<\/p>\n Sell to Open EA Aug 125\/120 Put Spread<\/strong><\/p>\n Tier 1: Enter at 0.65, Exit at 0.15<\/p>\n Tier 2: Enter at 0.95, Exit at 0.45<\/p>\n Tier 3: Enter at 1.25, Exit at 0.75<\/p>\n The 248 price level has been tested twice, if it is tested again, look for a move to the next pivot levels. At that level is a good place to start scaling in.<\/p>\n Trade Setup<\/strong><\/p>\n Expected Price: 244<\/p>\n Sell to Open ADBE Aug 220\/215 Put Spread<\/strong><\/p>\n Tier 1: Enter at 0.60, Exit at 0.10<\/p>\n Tier 2: Enter at 0.90, Exit at 0.40<\/p>\n Tier 3: Enter at 1.20, Exit at 0.70<\/p>\n <\/p>\n Now I don’t want this trade to trigger, because I’ve already got exposure in this narrative.<\/p>\n BA gapped down hard on trade war voodoo. Very technical term, I know.<\/p>\n What’s more important here is that the stock experienced a failed breakout pattern. Many times when a stock fails to break out, it will retest the lower end of the range. That’s what we’re looking for here… a swift capitulation towards the lower end of the trading range.<\/p>\n Trade Setup<\/strong><\/p>\n Expected Price: 330<\/p>\n Sell to Open BA Aug 290\/285 Put Spread<\/strong><\/p>\n Tier 1: Enter at 0.65, Exit at 0.15<\/p>\n Tier 2: Enter at 0.95, Exit at 0.45<\/p>\n Tier 3: Enter at 1.25, Exit at 0.75<\/p>\n <\/p>\n GLD is selling off hard, and is breaking 120 in the premarket. This is a good place to start scaling in. 5 day selloff currently at -2.37% which is statistically oversold. And the 10 day reading is heading towards -3%, also a key oversold level.<\/p>\n Gold has been trading in a very volatile trading range and we’re starting to head towards the first support test of the Dec 17 pivot. Odds are that will hold.<\/p>\n Trade Setup<\/strong><\/p>\n Expected Price: 120<\/p>\n Sell to Open GLD Aug 118\/115 Put Spread<\/strong><\/p>\n IMPORTANT! I’m using theoretical pricing which may be very different on the open due to the gap down, changes in pricing and implied volatility. The opening prices may be a little higher or lower depending on how we move. Sell the first spread for as low as 0.50 and watch the open to see if we can get a higher price.<\/p>\n Tier 1: Enter at 0.65, Exit at 0.25<\/p>\n Tier 2: Enter at 0.85, Exit at 0.45<\/p>\n Tier 3: Enter at 1.05, Exit at 0.65<\/p>\n","protected":false},"excerpt":{"rendered":" After coming up to test the 2800 resistance, the market has been pulling back over the past few days. “The market” here being the S&P. That’s a touch misleading. See, market correlations have again gone to the floor. Some areas are seeing continued weakness… think industrials due to the “trade war” and large-cap financials. Yet […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/11043"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=11043"}],"version-history":[{"count":2,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/11043\/revisions"}],"predecessor-version":[{"id":11051,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/11043\/revisions\/11051"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=11043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=11043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=11043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Trade #2: EA<\/h2>\n
![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/06\/img_5b2b9464078a4.png\")
<\/p>\nTrade #3: ADBE<\/h2>\n
![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/06\/img_5b2b944478389.png\")
<\/p>\nTrade #4: BA<\/h2>\n
![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/06\/img_5b2b942389236.png\")
<\/p>\nTrade #5: GLD<\/h2>\n
![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/06\/img_5b2b9404da2a9.png\")
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