In the semi space, we can see that SMH is running into resistance; however, the shining star is AMD. AMD not only has a backtested history of being a strong buy on the dip, but it also has a history of running into earnings. After the recent pullback, I’m looking at it for a buy.
I’m starting to see signs of cracks in the market, primarily through the low $PCALL and failure of IYT at resistance. I’ve lightened up my positions considerably and have a small hedge on. The key here is knowing levels to get in, when the market does pullback — and setting up for the next setup, the run into earnings.
There are some positions that continue to linger in no-man’s-land and others that are triggering entries or coming close to it. Here’s what I have on my radar as we start the week.
Both these markets are still in a bearish trend. The current retracements are setting up continuation plays in both.
Witching expiration generally offers some good opportunity for short volatility trades, and this series was no exception. Let’s look at some of the characteristics or the best short term plays for the past 4 days.
As we complete June expiration and roll into the end of Q2, I’ve got to think caution is warranted. AAPL and BA have been high flyers but I think they’re due for a pullback and will be watching them against these levels as we get into next week.
With the kind of volatility the market navigated through today, questions about the validity of trends and positions are bound to come up. Here’s how our current book is shaping up.
