Scott Redler: Can Netflix Stay Super Special?
Netflix (NFLX) still has best in breed status, but today we’ll really see if it can stay super special. To stay that way, it has to hold the $411 area. If not, it can hit $408 to fill the gap. I’ll be watching it closely on the open to see if it’s buyable.We’ll see if tech can help today after a move back to all-time highs. QQQ $175.80 is upper support. If this holds, the downside will be muted. If not, the $174 area will be key to watch. Tech will give us clues on the market so be mindful here.The President is pushing for tariffs on $200 billion worth of Chinese goods, just as the SPX hit big resistance at 2800. Thank goodness this came after markets were up for 4-5 sessions and overbought, giving us signals to ligten up. Now we’ll see what areas hold for possible new longs. Holding 2760ish would be very constructive to hold for the next few sessions. We can’t rule out the 2745 area — under that and the active bulls lose control. Watch the small caps and tech today to see if they help pull the market off the lows.
Continue Reading -->LB at an Inflection Point | Options in Play
Options in PlayOptions Trades with Kurt CapraToday’s video covers a recent LB trade, which we have mentioned a couple times in recent nightly letters. The stock is at an inflection point and monthly comp number’s this Thursday could be the catalyst to turn things around.
Continue Reading -->Scott Redler: Why I’m Not Crazy About This Open
On Friday, Apple (AAPL) reclaimed all moving averages on Friday as it cleared the $188 area. Yesterday, it hit a high of $190.68. See if it holds the gap pivot of $189.30 to keep some active upper commitment.As I said, on Thursday, tech gave clues that markets could be bought. QQQ’s cleared the lower-level pivot and filled the gap above $174 to show some power on Friday. Now see if it can hold $175.74 to work its way back towards $177.98.And let’s talk about Netflix (NFLX) since we focused on it so much last week. This was my favorite pattern. It broke above $400 and hit a high of $408.65 Friday, and today it’s up another $7. I trimmed some and will manage the rest. It’s in the game to hit all-time highs but might need to digest first.
Continue Reading -->IBM Options Trade Into Earnings | Options in Play
Options in PlayOptions Trades with Kurt CapraIn today’s video Kurt discusses a current options trade in IBM. We were targeting a ramp into the earnings report and the trade is starting to move in our favor so we will talk strategy and profit targets.
Continue Reading -->Scott Redler: The Power of a Blown Right Shoulder
Last Thursday, tech and small caps gave clues that it was maybe time to “cheat long” heading into Friday’s jobs number and the institution of tariffs. Turns out traders sold the rumors and bought the actual news Friday. The right shoulder of what could have been a H&S pattern blew out to help ignite the upside. The index has room towards 2800 this week but I’m looking to be in trim & trail mode today.As I said, on Thursday, tech gave clues that markets could be bought. QQQ’s cleared the lower-level pivot and filled the gap above $174 to show some power on Friday. Now see if it can hold $175.74 to work its way back towards $177.98.And let’s talk about Netflix (NFLX) since we focused on it so much last week. This was my favorite pattern. It broke above $400 and hit a high of $408.65 Friday, and today it’s up another $7. I trimmed some and will manage the rest. It’s in the game to hit all-time highs but might need to digest first.
Continue Reading -->Ryan Tonking: When Everything Comes Together for an Incredible Trade
Ryan Tonking | Black RoomOnce in a while, everything comes together perfectly for a big trade. Let Ryan Tonking show you an example of one.
Continue Reading -->Scott Redler: Netflix Puts on a Great Show, Let’s Keep Watching
On Monday, I said Netflix (NFLX) is one to watch now, and that “To keep its ‘go to’ status, it has to reclaim $390.55 in a sea of red.” It’s been choppy lately, but reclaimed that level and stairstepped with higher lows each day this week:It was on the stronger side this morning and is very tight. The stock hit a high of $405.60 to put me in trim & trail mode on my long. Even if you don’t trade NFLX, watch it because it can give clues on what’s next for tech and the markets overall. We’ve been able to buy vs. support but not add higher. If NFLX can stay above $400, perhaps it opens the door up for more momentum.
Continue Reading -->Looking Ahead to Earnings Season and Financials | Options in Play
Options in PlayOptions Trades with Kurt CapraThe light volume, holiday shortened trading week is giving us a chance to look ahead to next week. Earnings season kicks off towards the end of the week and Financials will be the names in focus.
Continue Reading -->Options Swing Trades: Semi Suppliers AMAT LRCX | Options in Play
Options in PlayOptions Trades with Kurt CapraToday’s options trade discusses Semi supplier names AMAT and LRCX have had a tough stretch since they reported. Both are trading at their lowest levels in several months but could be offering interesting opportunities for swing longs as Implied Volatility contracts thanks to recent weakness
Continue Reading -->Scott Redler: Netflix Is One to Watch Now
Netflix (NFLX) is a key name to watch now. It put in an island top with a few lower highs, which has us feeling more cautious. To keep its ‘go to’ status, it has to reclaim $390.55 in a sea of red. If not, I’d be careful because we have the 21 day at $382 below. If that doesn’t hold, it wouldn’t be good for tech and market psychology. Let’s turn to the QQQ’s. Tech was the place to be for most of the year. There were more reasons to be more cautious since there is an unfilled bear gap and 21 day resistance. Let’ see if new flows can come in to relieve the pressure. Last week’s low is the $169 area. Do we make a higher low? Revisit that low? Or break it this week? Be ready for each scenario with a plan.China is still a problem with the Shanghai 20% off the highs. Most of Europe is below the 200 day. There could be a mini Head & Shoulders pattern developing. So 2691-2700 will be key for this week. See if high-beta tech gets flows to help the morning weakness, and if third-quarter flows and typical holiday upside can relieve some pressure.
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