CAT over 200% move potential

I think the downtrend will continue and it will retest the lows that we saw in July around $170.  That is my target if things go my way.  Remember, if you are betting against a stock by buying puts, then you want the price of the stock to fall.  We will discuss this live today @ 11am.

If I am wrong, CAT will go up from here.  I would then stop out or a loss with a close above $188.

I am also only going to start with a half position size on this trade.  I would like to have room to add to the position if CAT gets back to the low-$180 area.

Over 30% potential in 2 days, adjusted the trading strategy due to changing conditions!

ETSY was my weekly Bullseye trade of the week Idea on Monday.  I used the weakness on Tuesday to get in at favorable prices and I took ½ of my position off into strength yesterday. That’s a quick 30% in 2 days

Bullseye Pick Of The Week – NFLX

https://shared.tradersync.com/jeffrb/df85230b-2f6d-11ed-9bff-061a3d52649f

The early morning selloff Tuesday morning provided a great spot for an entry in NFLX. I took the trade, and although I got out of some to control my risk, I quickly re-entered the trade as it showed strength.

I Bought some in the mid $5’s and sold in the mid 7’s and mid 9’s as NFLX had a strong trend day yesterday 

I’m out of the trade now given how quickly it worked, despite there still being plenty of room to run to my initial $240 target.

Here were some of my thoughts yesterday:

There are a lot of positive things to like about NFLX lately. It has been one of the strongest large cap tech stocks over the past couple months. 

After back-to-back disastrous earnings reports, the company is finally finding its footing and has been grinding higher from the $180 range to nearly $250 a couple of weeks ago.

I am going with options that expire 3 weeks out in order to give myself more time for this trade to work out if needed.

ERX – Bullseye Pick Of The Week

https://shared.tradersync.com/jeffrb/f78dc2c1-22db-11ed-9bf9-061a3d52649f

Well this week’s Bullseye was right on target. It’s only Thursday and my best trade Idea for the week has already hit all its targets. I was out half my position on Tuesday, and took off the rest on Thursday for over 100% gain. Here’s what happened:

ERX exploded on Tuesday and my first target of $60 was hit. It’s been one of the strongest trading instruments in the entire market this week as the price of crude continues higher. On Wednesday the trend in ERX continued and it hit my second target of $62 and I took off the rest of the trade. Despite overall market weakness the Energy sector was on fire this week outperforming.

There was a reason this was my Bullseye pick of the week and it worked perfectly. Congrats to everyone who joined me on this one!

700% potential

Bullseye Pick Of The Week – AMZN

AMZN has been trying for over a week to get through the 200-day moving average, but to no avail.  Since that has been such a tough spot to get through, I am going to use that as my stop on this trade.  That would be AMZN closing above $146.

Since I am betting against AMZN this week, I am looking for a move lower in the stock.  My profit target will be $133 which is the midpoint of the Keltner channel.

It is going to be an exciting week for the markets so make sure you are ready to go!

ARKK – Your Bullseye Pick Of The Week

https://shared.tradersync.com/jeffrb/3459f5e8-0766-11ed-9832-061a3d52649f

If you know me at all, you know I absolutely detest this stock (ETF).  

It is made up of the worst companies out there, in my opinion.  

However, when I think the market is going to sustain a rally for a while, I think ARKK will outperform the QQQ so that is where I want to place my bet.

If I am wrong, I will cut my losses if ARKK closes under $41.50.  On the upside, I think this has enough room to run to almost $50 soon.

I am taking contracts that are 3 weeks out, so I may decide to hold these longer than a week if that is what it takes for one of my targets to get hit.

Best of luck to you this week!

Bullseye Pick Of The Week – AMC

https://shared.tradersync.com/jeffrb/919ab55a-021e-11ed-bb7f-061a3d52649f

This week I am going with one of the worst stocks in the market – AMC.  Yes, even junk stocks can bounce and I am expecting that to happen with AMC soon.

My whole reason for going with AMC this week revolves around a slowly building uptrends that has been in place for over a month.  

This is a massive squeeze opportunity where we could see the stock shoot higher, at least for a short amount of time.

If I am wrong, I will place my stop if AMC closes under $12, which is below the recent low in the trend.

On the upside, I think AMC could briefly hit $17+ in the coming days.

Good luck this week!

FNKO – Bullseye Pick Of The Week

As you can see from the weekly chart, this is in a very bullish setup right now. 

I have no reason to believe that it will break down, but I am also preparing for that possibility.

How am I going to trade FNKO?

Buy FNKO Jul 15 2022 22.5 Call near $1.40

I am going to place my stop on this trade just under $21.

On the upside, I want to sell half around $25 (which has been previous resistance) and then save a piece in case it breaks out higher from there.

Stock Result

LULU 14 Apr 22 $320 calls

Opening Price 3/28 $16 

High $66.43 after earnings

This Bullseye trade of the week was CHWY. The stock took off after the alert was issued and ran up to a high of almost $80 dollars a share before retracing.

Original Alert went out on October 25, 2021.

CHWY is starting to find a base above the low-$60 support level that it has been building for a few weeks now. I might be a little bit early, but I think this is a good time to start to build a position.

Additionally, there is a Bull Flag pattern that is forming and if there is a breakout to the upside the measured move suggests there is a bit of room for the stock to run before the bulls take out profits.

This target level also correlates with a prior support level which could become future resistance for the bulls, suggesting that the bears will be waiting to jump back in at those price levels.

So, why am I doing this?

I think CHWY is going to be a strong stock into the end of the year as funds begin to “bargain shop” for overlooked ideas that have room to run.