The stock market closed at another record high yesterday and continued it's 'winning' ways. As Central Banks have made the stock market the only place to go.
Regardless of where the market heads from here, I am looking at a few trades both short and long term.
I entered some $TSLA puts yesterday as it neared resistance.
As long as it remains under resistance, I will trade it for a move to $210 support over the next few weeks. This week I am in the $220 puts. The stock has quieted down the last few weeks, with volatility near a record low. Which means the market isn't expecting much action from the stock and consequently the options are about as cheap as they've been in quite a long time
$XLE that $70 level is coming back into focus. With the US Dollar getting clubbed this morning, and a big bank calling the bottom in Energy, a break over $70 could set up more upside into the end of 2016. I'll wait for that break and hold of $70 first. On the flip side $70 failure would be a terrific set-up for downside the next few months.
also on watch is GOOGL. The stock, since the lows of 2009, has made the majority of its gains in swift moves after prolonged consolidation. GOOGL could be breaking out of this consolidation here and a move to $1,000 is a distinct possibility if the market, and technology shares continues to paint daily record highs.
$FB, it doesn't look like much, bot Facebook has been doling out some nice steady gains the last few years. Absent a collapse in the stock market, this trend will continue. I think the stock could see $130 into September and I will be looking for calls to take advantage of this move.
and finally BIDU. After $BABA's sharp rally last week, I think $BIDU could be next with the $190 level a likely area it will land in the next few weeks. This goes against what I saw for $BIDU a few months ago but it's becoming clearer that China is not slowing and this stock market is going to keep grinding higher.
Overall, as much as I don't like the forming debt bubble, as long as debt remains cheap, the show must go on. We know how it ends, but we don't know when, and until that time comes trading for upside remains a far better rout than trying to time a top that may not come for many more moons.