In the Advisory Letter, we said “There have been some wide up and down swings over the last three weeks and after that, the broader markets and most sectors are about where they were three weeks ago. The market internals that had reached being at a bearish extreme, which is bullish — combined with the breakdown bar failure that occurred — gave us a short-term bullish bias.
The bullish internals level has dissipated to being neutral now. And while that does not mean bearish, the floor that they historically provide when bullish has weakened.
With the weekly price support holding, and the daily moving averages pointing lower, next week’s direction looks like a coin flip at the moment.”
After the weekend news, the morning direction/session will be interesting; thus, we don’t want to be aggressive.
Below are two bullish trades, however, which should move higher if they trigger.
Below is a daily chart of Alphabet Inc. (GOOGL).
Trade: Over $1053, consider shorting Apr (4/20) $1000/990 bull put credit spread (5 DTE) for mid-point but a limit of $1.00/share (closed at $1.30/share).
Technical Setup: Breakout from bullish consolidation and Major Support at r200-MA.
Option Strategy: Bull Put Credit Spread (BPCS).
Stop Loss: $1,006.25.
Below is a daily chart of PowerShares QQQ ETF (QQQ).
Trade: Over $163.26, consider shorting Apr (4/20) $160.5/155.5 bull put credit spread (5 DTE) for mid-point but a limit of $.75/share (closed at $.99/share).
Technical Setup: If triggered, Red Bar Ignored (RBI) after Breakout daily.
Option Strategy: Bull Put Credit Spread (BPCS).
Stop Loss: $160.66.
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Greg Capra
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Dan Gibby
Chief Options Strategist
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