Great rally for the markets but I am not completely convinced we will make new highs.. i'm looking for a strong day tomorrow and maybe even into wednesday morning.. then roll back over to test recent lows at 1340.25 on the S&P. Now I know nobody can predict the future.. But this is what I see in my crystal ball jk.. but I do think a reversal will come this week. This brings me to my first stock on watch.
TLT - Been bidding for weeklies today but with the gap up I did not get filled. Left order in all day but no luck. I still like the trade though, but instead of weeklies, rolling this out to december calls.. Bid is in for 122 strike december calls at 2.60. I have a conditional order in with a target (limit order) at 3.60 and a stop at 1.60. The bond market has a negative correlation with overall market so if we get another leg down, this trade makes sense.
There are a few strong stocks I will be aggressively buying if we get a gap down and stabilize. I don't mind being long these strong stocks even if the market turns down. Here are a two:
EBAY - a pullback to 51 dollars and I will look to buy december calls.
CRM - Gap down tomorrow and I'm all over this.. Not saying it will gap down, but if it does, it will make this trade very easy. Very bullish on this.
COST - holding key moving averages and nice dip today that I think provides a good entry. I like this one to the long side.
NTE - Broke out of bull flag today after it had good news. got some calls today. Good close near highs.. I will sell if it can't break 16. That will be a very key level. I plan to hold if it breaks 16. Fibonacci extension at 16 and the market respects these fib levels Tight stop on this one. If it breaks down below that 15.00 level I will be out.. a re-entry is just a commission away.
GOOG - Can't seem to get out of it's own way. This will make a good short when the market shows weakness. This will be one to short a gap up..
Sorry for the short watch list. 2 exams tomorrow and finals week coming up. Goodluck trading!