I think the play for the end of the day tomorrow is a straddle on anything affected by a China deal. Who knows if it'll be good or bad, so straddle might be the best play. The cheap options candidate is retail ETF XRT, though we'll probably see more movement in chip stocks or AAPL.
Buy at the end of the day, worst case you lose one night of premium....
If this is a wedgie and today's action completes the formation then the target is a little under $41.
Of course with this pumptarded market, I'm expecting a big futures buy on close and a gap up again tomorrow before the tank on Fed dot plot.
Looks like XRT (retail ETF) is forming a wedgie with divergence. Doesn't look complete yet though, no position.
Retail numbers were good last Friday but the profits aren't there and earnings sucked across the board (except LULU, lol) so there's really no compelling reason for a retail rally. AMZN and WMT are gonna bankrupt everyone else.
If I was gonna invest...
You know at this point that they want to double top the market indices, probably gonna get there by pumping retail and financials. They both have inverted H&S patterns as does small caps.
No compelling reason why retail should go up, but the market will get what it wants. Everything gets a double top, lol
Another chance to go long on XRT. Macy is just one store, everyone else reported high holiday sales. Should close this gap by Monday. Cashing out on the gap close. Short term trade (3 days or so).
XRT options have good liquidity and low premiums. Easy to trade.
Almost perfectly symmetric inverted H&S on the intraday chart. Faded the gap this morning with XRT calls, no position right now.
Anticipating either a 2pm market pump (like the past week) and/or a gap up tomorrow. XRT will be my afternoon play if the charts look right... if not I play the gap tomorrow morning.
I'm not bullish at all, but you go with what the market gives you. Strong retail numbers, market getting a bounce. The overnight computerz are designed to pump futures, so I'm holding this overnight and hopefully dumping on open tomorrow.
I like to use XRT and GM as surrogates for SPY and DIA options. Long on both until market opens tomorrow. I'm pretty sure...
Whats up Traders,
All of the explanation is on the chart.. .
Retail Economic Data coming into play on this one majorly.
We are looking for a breakthrough of the descending wedge pattern
Looking for continued retail sales growth next month also.
XRT puts have good liquidity, cheaper way to bet on COSTCO earnings than COST options. Going with puts this morning. Already down quite a bit while I'm typing this since most retailers are tanking anyways.
Retailers have been champions of underperformance, slicing through support.
As a conclusion, all sectors that are economically sensitive, energy, semis, retailers, homebuilders, are in deep trouble recession is maybe being signaled?