Today was a more exiting day for the market bulls. Last night futures were down 6 handles and came back roaring today closing up 5 pts. It was an exciting day for tech as BABA and AMZN stole the show. BABA was the real winner as it went up around $3.50 today.
AMZN had a nice gap up after an upgrade. AAPL also had a nice move closing up 1% on the day, but failing at 131.50 resistance. Look for it to test 132.5 then 133. I suspect we will touch those levels before heading back down. I will continue to hold my call fly until either we touch and hold 135 or break below 1225. I still feel confident in the trade.
My Bidu 200 calls from yesterday closed at $1.20 from $.25. Good for a 5 bagger. Unfortunately I sold ¾ of them for only a 50% gain But I am holding the last quarter overnight. I expect the market to rally tomorrow, but think we will come under pressure next week. I continue to expect very low volume. For those looking to trade the SPY I think a short around 214 offers a good r/r. I will reiterate that there is not much going on in the market for the next few weeks so when everything looks great like it does now try not to get fooled and go all out and buy a ton of calls because the major theme this year has been failed breakouts and breakdowns. The IV Is very low as seen by the VXX dropping and the VIX at 13, so the odds of a big move for big cap names is relatively small. There will be a few outsized moves like there was in BABA, but I expect a boring market mostly for the next few weeks (or until the VIX jumps).