Homes were renovated, appliances were upgraded, and new homes were furnished. This does not happen annually. I am looking for HD and other related stocks to cool off. This 321 area is a good place to enter swing puts.
The 14-day RSI shows a dip below 33.33 (yellow circle), which means I am looking for this move up to stall soon (RSI pink circle) and turn down. Stochastic is also elevated and I am looking for it to also turn down. If price wants to go higher, then these indicators could stay elevated, but I will stop out with a small loss.
Looking at 270 dollar puts into december at the top of this market up-movement, which should head strongly into tomorrow but get bitch-slapped into another correction. this should lead fundamentally and technically to HD dropping to 260 dollar level, first off, before possibly heading lower. imo. What do you think?
OptionsRising
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@Antikythera_Mechanism, Thank you for your comment. I took some quick profits within the few days after posting this idea. Will be looking to reenter puts. Price could head to your targets on a severe market dive (maybe Aug-Sept?), but it may hold support. See this chart:
Antikythera_Mechanism
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@OptionsRising, Thanks for the timely reply. There are three things running against home depot: 1. Retail does terribly into summer 2. Prices have slowed construction and improvement projects to a stand still which is threatening to worsen running from summer into fall and winter. 3. Price is way over-extended for this company. Here is what I have for the first part of the leg of this HD downturn:
@Antikythera_Mechanism, Interesting... I do not use harmonics. So according to your chart, all of this year's gains will be wiped out. I have to check the earnings date, and I might open a swing put position today.
Antikythera_Mechanism
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@OptionsRising, Yes. But I would be careful with this. I wanted to catch it, if the market turns down, but I fear this beast may hold it's value and this pattern will not be valid.
OptionTrends
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Next hour should tell an interesting story but I entered into 320 puts for 7/16 expiry. Good to hear from you!