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BAC SHORTBAC (and the rest of the banking industry) has a rough few months ahead. The major institution has seen solid gains over the past year and is about to relinquish them all. The major indication this downtrend is about to pick up steam is seen as the 50 day moving average is ready to cross below the 200 day moving average, a major bearish sign known as the death cross. Price on the weekly candle has managed to close significantly below this intersection point, a sign that a significant decline could come sooner than later as there is very little support below the current price. Seen on the chart above, RSI is also headed south with no sign of retracement anytime soon. Money Flow is in a steep downtrend as well. I anticipate BAC seeing at least a 20% decline in the coming months. The last time BAC had a similar set up with the 50 day moving average crossing over the 200 day moving average, the stock fell 33% in 6 weeks. I have picked up November and December puts for BAC (and JPM because the chart and my prediction is basically the same).
NYSE:BACShort
by pstowe
The most logical short in the stock market: TAOEarlier this month, my friend Harrison Schwartz wrote an eye opening article exposing the disaster that is in store for Chinese Real Estate investors (seekingalpha.com). The article analyzes the unthinkable situation China is in, and what is most likely going to happen. After reading it, my first thought was how can I make money off of this inevitable crash? That brought me to TAO, an ETF that tracks Chinese Real Estate. Fundamentally, this ETF could drop 80% over the next year or two. Technically, the signs are there as well. It is the most logical trade I have ever made. Looking at the chart, there is a clear head and shoulders pattern that has formed over the past 10 months. A death cross has recently occurred, marked by the 50 day moving average crossing below the 200 day moving average, a very bearish signal. There has been a recent bounce after bullish divergence on the RSI which could lead more short term gains. However, if TAO reaches the low $29's, it will most likely get stopped out by resistance in the 200 day moving average and resume its plummet, where I will be looking to enter a highly leveraged short position. Lastly, the weekly chart for TAO confirms the long term bear trend that it has entered, as RSI is pointing down hard, validating the recent bull trap.
TShort
by pstowe
5
Netflix (NFLX) - Bearish Earnings Options Action TradeOn Friday's Options Action, the crew analyzed the performance of Netflix (NFLX) stock. NFLX has recently broken out to the upside of a 10 year ascending wedge formation, which is extremely bullish. That bullish trend has however turned parabolic, which suggests that there are greater risks to the downside and primed for a possible correction. Coupled with a double top formation and earnings this week, the stock would need a signifcant beat to continue it's bullish trend. Expecting NFLX to possibly pull back on earnings, Michael Khouw suggests buying an Aug 350/370/395 Put Butterfly for a $5.00 Debit. As of Friday's close, this spread is trading at $5.00. We've structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. View this OptionsPlay on AXP - app.optionsplay.com Cost: $500 Max Reward: $2,000 Max Risk: $500 POP: 26.45% B/E: $350.00, $390.00, Days to Expiry: 33
NASDAQ:NFLXShort
by OptionsPlay
IWM - Russell 2000Sticking to adding some short delta here until we are able to start breaking out more... -1 Aug17 170/174 call spread, with a financed $162 put - overall $.10 cr. The trade has unlimited profits to the downside, in theory, but very little chance in reality. I have set a stop loss at $171, to equal around a $100/contract loss. I will probably look to manage this trade if we get a quick move to $200-300 profit, or until I don't see the same bearish-neutral bias represented. Luckily for this play, time is on my side since I received a credit.
AMEX:IWMShort
by Benji
Nifty Trade Setup - 29th juneHello all, First I would like to say sorry for late update for nifty Trade setup for yesterday. Guys, We had made the damn good profit. It was almost breakout their strongest support when hit 10558 but closed 10589 later of the day. Today we need to wait for first 30 minutes. If nifty closed 10550 then we will go with sell and our target is 10515/10436 but if started to trade above then 10600 then we will buy for 10631 target. My Trades : gyazo.com Good luck
NSE:NIFTY
by CodeViser
DAX Short. H&S, descending triangle, Elliot wave count BEARISHNow, there are several bearish patterns that have emerged in the DAX chart. The 5-wave count and the H&S pattern with a descending triangle are all very bearish signs showing the correction is not over yet, and there is still plenty of room to fall for the DAX. Look to enter a trade after the break of the descending triangle pattern, which is also sitting at the 0.382 Fibonacci level, which, when broken, will help accelerate the plunge. My price targets are somewhat conservative, although I am forecasting a large move. My price target 1 is simply at the 0.618 Fibonachi level, which is one of the more significant fib levels. I arrived at my price target 2 by applying the tendency for triangles to breakout to the size of their left boundary. If you are feeling pretty bon vi von, you could look to the 0.786 fib level for a possible target 3 at $24.01 This trade has multiple, strong pattern indicators showing it has a high probability, and using a few ticks above the lower triangle support pattern as a stop loss, it has a fantastic risk/reward ratio of 15 as well. This could take quite some time to develop, but things will move quickly once the 0.382 retracement / triangle support pattern is broken, so a OTM put option buy at that time could be quite profitable.
NASDAQ:DAXShort
by Bullish_Harambe
1
Weekend Quickie- Time to Pick Up Some Protection, Puts on the Q?Are there many reasons for the overall market to go higher? Other than the resolution of U.S. and China trade concerns, there don't seem to be a lot of good reasons for the stock market to rise as a whole. Back in March, traders were discussing "the most anticipated selloff of all time" as trade, political, and monetary fears were sending the market down off its highs. Concurrently, traders were gearing up for a meteoric advance in prices as earnings came in strong. Judging by the price action, these two theories are in vigorous, directly opposed but equal competition with each other, and as a result we can see the QQQ trading in a volatile stalemate. Indeed, most earnings are coming in very strong, but with undertones of lackluster guidance. Guidance aside, market wisdom dictates that good reasons are needed for prices to climb (traders\investors often need good reasons to buy), but prices can fall on their own account. Are there many reasons for the indices to head higher? Are there many reasons for the indices not to fall? As uncertainty continues, traders are considering downside protection with puts or short positions on the market, even as upside bets are being made on certain stocks and sectors. Please like, follow, and share, and maybe we can have fun and do great things together. Thanks again! See it on the site: holsturr.com/category/markets/charts/ ** For speculative and research purposes only - good luck! **
NASDAQ:QQQShort
by holsturr
DERM - Selling Puts - Opened Limited Orders DERM - expect volatility. Overall, bullish outlook. Could have significant swings. The options are so expensive right now it makes for an optimum to sell. I don't like either a credit call spread or any credit spread in this situation. Simply selling puts seems like the correct strategy. I've placed a limited order to sell 3/16 $25 puts at $5.6, mid price between ask/bid. (current ask/bid is 5.2/6) I typically place limit orders at a more optimal price than mid-price, but the premium is so high I didn't feel the need to. $5.60 premium (credit) pushes my break even (or buy price if the option is exercised) at $19.40. Based on the charts & overall bullish outlook, I feel pretty comfortable with that risk. DERM 27.90 D = -.1892 G = .0716 T = -.0183 IV = 236.39% (vs. 49.29%) Theoretical value is .43
NASDAQ:DERM
by JLJ002500
Cautiously Bullish on SHOP by selling Put Credit SpreadsSell the Feb 16 SHOP 100/95 Put Credit Spread for $0.65 or better, for a 13% (not counting commissions) return within 35 days. Stop loss should be if the spread increases to $1.30. SHOP has held the 61.8% retracement of the Sep 17 high to Oct 17 low and is clearing the way for higher moves. Playing it with selling a put credit spread and receiving $65 for every $5 wide contract sold, for a potential 13% Return on Risk over 35 days. Happy Trading Lindosskier
NYSE:SHOPLong
by lindosskier