Trying something different this week by providing more context to my #SundaySwing ideas I post every Sunday on Twitter. Since I don’t like Twitter threads, but I have a neat little Micro.blog (you’re reading on it right now!), I post my ideas in longform content here and the link to that post is shared on Twitter, like my Daily Recap posts.
So this week I’ll add an explanation and also a chart from TrendSpider to explain my idea in more detail.
Outlook
Lots of tickers closed the last week with an inside candle (Scenario #1). Since inside candles are so powerful I select some of my favorite setups for a possible 2u or 2d (#TheStrat) this week, based on the weekly charts.
Options and Expiration
All ideas are based as a swing idea, so I plan to buy options with at least 2-3 weeks expiration. Some I would go to 11/19 or even December expiration to buy some extra time and go away from earning because many have earnings in the next couple of weeks.
Swing ideas
Would love to get some feedback about this new “format” and if this helps educate #TheStrat, as well as I’m open for any things that will help more.
Note: To view the charts in full detail, open them in a new browser window
$SQ 265c > 251.65
A possible 2-1-2u on the week above 251.65, trigger for entry is high from 2 weeks ago, to be safe and not using last weeks high of 251.34. Month is still 2d but green. Next targets on the weekly chart are 259.86, 268.17. The daily chart early entry would be above 250.46
$DLTR 105c > 100.25
Double inside week on $DLTR, so a possible 2-1-1-2u Bullish continuation above 100.25. Again I chose the trigger from 2weeks ago, not from last week. If you look at the weekly chart you will see why. What also caught my attention is the monthly chart. Currently a 2d-1 on the month, with a good chance to become a 2-2 Reversal above 101.43 with a target of 106.64. My option play would be the 11/19 105c which is cheap and plenty of time.
$EBAY 77.5c > 75.75 | 70p < 74.20
EBAY with an inside week as well for a possible 3-1-2 setup into this week. 75.75 for a Call play, 74.20 to play a Put one. Both scenarios possible. Since month and week is green a bullish setup is very likely. However I give both sides for preparation here as well.
Month is green with 2d, chance to get an outside month above 77.22 which is near and suggested contract covers this as well. Would go out to 11/19 with expiration to buy some time.
$AMD 120c > 112.83
AMD seems to be on many watchlist into the week, on mine as well. Very bullish with a possible 1-2-2 Bullish Continuation above 112.83. There are not many targets and I expect that AMD tests it’s all-time-high from August at 122.49 soon, if bullish run continues.
$DIS 185c > 178.89
Possible 2-2 Bullish Reversal on the weekly. Expecting a bullish move because FTFC is already up and last week was 2d but green. Entry above 178.89 with possible targets at 182.23 and 185.90. However, I would suggest latest expiration for the contract at 11/5 because DIS has earnings on 11/10 and I don’t like to play earnings.
$GM 60c > 59.34 | 57p < 57.08
Could also move in both directions. Month is green with a 2u, weekly 2-2 Bullish Continuation above 59.34, next target at 60.72 and 64.30 for longer expiration. Earnings on 10/27, so risky if expiration is 10/29, would go longer out, contracts are cheap. On the downside 2-2 Bearish Reversal on the weekly below 57.08 for possible targets 54.21 and 53.15.
$QCOM 140c > 130.48
Possible PMG long on the weekly for $QCOM. FTFC up and last week was a 2d and green, so if market is bullish this could be a thing. Entry on 2-2 Bullish Reversal on the weekly above 130.48 with PMG targets at 134.04, 135.16 and 144.81. The ladder one is very unlikely short term, but who knows? Would go out to 11/19 expiration with a 140c to buy some time. Earings on 11/03!
$JNJ 165c > 161.85
Another PMG possilbe for JNJ on the weekly. 2-2 Bullish Reversal above 161.85 would also turn the month green for FTFC up and maybe triggers the PMG. Keep in mind that JNJ has earnings on 10/19, so a further expiration like 11/19 or even December would be my idea.
