For two weeks in a row now, the market has started strong on Monday and ended strong on Friday, with weakness and choppy action in between, but the catalysts have been different. Friday’s large rally across the market was driven by better-than-feared earnings from AAPL, and the outsized reaction to the numbers helped QQQ and SPY close above key levels (20day sma on QQQ, 50day sma on SPY). This coming week will be a volatile one, though, with more high-profile earnings due out, the FOMC rate decision on Wednesday, and the monthly jobs report Friday morning, so expect more near-term twists and turns. With sharp, fast swings seemingly every week, we need to continue to have a balanced mix of bullish and bearish trade ideas and work quickly to lock in gains and hit stops. Also, it’s nice to see stocks exceed their priced in moves for earnings more consistently, so expect more earnings/event ideas.

CRM had a back-and-forth week as it was pushed around by other Software reports, but it managed to hold above 160 throughout the volatile stretch to solidify the recent breakout. With CRM resetting key previous support, the stock should start to build momentum for a move to the 100day sma above (166.75), but the Nov18 call spread roll up will need a sustained push closer to 169-170 to lock in more money. We can also tighten the stop on the trade now to 156 moving forward (a break under the 50day sma). 

ZM acts well. The stock broke through 80 and the 50day sma on Tuesday and it built a new abse above both the remainder of the week. With rising support from the 8day ema, ZM looks set up well for another leg higher, and the earnings gap high (87.59) is a near-term focus, with the potential to see an accelerated move through it. The Dec16 strangle has already been rolled up once, so we can be patient with the current position while the trade develops.