Ofensive Sector (Tech + Discretionary) vs Defensive Sector (Utils + Staples) on SPX index.
Although AAPL and GILD announce earnings next week, the only earnings announcement that interests me from a premium selling standpoint is TSLA, with a background implied volatility of over 65%. The 73% probability of profit May 11th 255/330 short strangle is paying 5.83 at the mid (off hours quotes) with its defined risk counterpart, the 68% probability of profit...
A snipper from my latest post.... drduru.com The stock market faded from bullish undertones and back into the resting position. Now we can just look back at what could have been. For the first time in a long time, I feel compelled to change my short-term trading call from neutral. While the S&P 500 (SPY) still sits well within a trading range of churn, I see...
PG has found long term support from a rising trend line that coincides with a major 61.8% retracement. This is a great place to buy for a longer term play on a great company.
Bearish Break for Clorox occurred in early February 2018. On the chart you can see 4 horizontal lines. Notice that the Yellow and the Red Lines can be used as a good place to short, since Clorox is in a bear market currently. These custom support resistance indicator lines show decent places to enter or exit. The Blue indicator line serves as a Bullish Trend...
Shares of ANFI appear to be forming a rounding bottom, with resistance overhead at $4.40. A breakout above could cause shares to rally, but a failure opens the door for a retest of the lows or extend lower. To be fair, I don't know much about this company's fundamentals (yet), so I'll update this as I sift thru the financials. I just wanted to point out this...
The XLK has largely erased losses since the correction while the Staples are still underperforming the broad market. SPY is showing strength despite concerns about steel tariffs and with the 10-year yields retracing, I see a higher likelihood of the SPY catching up with XLK than retesting the lows.
Staples has lagged behind compared to other sectors with positive estimate revisions. Consumer staples is among the worst performing sectors in the s en p 500 over the last twelve months. Buy what is cheap.
I came across an interesting pattern on consumer staples ETF (XLP). The pattern is a channel spanning almost 9 years. The pattern is well tested and respected (7 reversals on the lower bound, 6 reversals on the upper bound) Over the past two years, the ETF has consolidated gaining only 2% per year. Despite the consolidation, the ETF has an annual return of 22%...
General Mills could be bottoming. $XLP #consumer #staples
These are the two 'strong in summer' $SPX sectors #StovallTheory
higher time frame is showing defined uptrend with an over-extension on breakout pulling back mid time frame is showing markup to distribution to consolidation for the next leg down descending triangle is forming against downtrend line and multiple test of support is showing weakness possible breakdown to breakout level of 55.7x on higher time frame- first level...
With volatility this low I am looking for trades with IV percentile in the last 6months of above 25. XLP have an IV Rank of 14.5 which is low, but IV percentile of 33.5 in the last 6 months (which would meet with my criteria). I am placing an skewed Iron Condor, betting that it will stay within the expected move with a little skewed to the downside thinking...
SPX vs Major Sectors. I added IBB to cover Biotech. Please comment. My understanding at this point is to stay in sectors which have good fundamentals and have been relative laggards. The 3 bottom ones at this point seem to be Financials, Technology and XLU / XLP. Since utilities is a risk-averse sector, so in a pro-growth environment I may want to go with the...