Hi guys, Michael is ready with his top 5 tips for the week! If you follow regularly his recommendations, you will know that he has very clever analytical and predictive insights. Check it out and find which the best opportunities of this week are!
Originally posted by Michael Hodges. For more tips ask on forum or click here.
The S&P Is Making 5 Year Highs
S&P 500
Call/Put = Call
Entry = below 1460
Expiration = weekly
The S&P hit 5 year highs last week and based on that I would expect at least a little upside this week due to last minute stragglers trying to get into the market. On an actual technical basis the S&P is displaying a very nice buy signal on its charts of weekly and daily charts. On both charts we can see that stochastic has turned up and that momentum has turned bullish. While not a guarantee they help solidify my position that the long and mid term up trends are still intact.
The Euro Pulls Back To Support
Eur/USD
Call/Put = Call
Entry = below 1.3050
Expiration = weekly
The Euro made a sharp drop last week when the FOMC minutes revealed they were considering an end to QE. The 1.3000 level has been an important support/resistance line and pivot point for more than the last 12 months. This move was completely knee-jerk and will prove to be yet another buying opportunity for bulls in this trade. The FOMC minutes were perceived in the wrong way for two reasons: 1) they were minute, a discussion by the Fed Governors, not policy. 2) the outlook for this end to QE is at least 10 months away if not more which leaves the current fundamentals intact. Once the markets realize this the Euro will continue to strengthen against the dollar. I am entering into weekly calls on this trade.
Amazon For Earnings Season
Amazon
Call/Put = call
entry = below $260
expiration = end of the month
I am expecting earnings season to be a good one this year and Amazons recent action makes me think it is a good place to ride it out. However, on a note of caution, Amazon has gapped up twice in the last week of trading and is ripe for a pull back. I will wait for said pull back before getting into a monthly call.