My Trade Plan Details:

• ERX Aug 11 2023 $60 call near $1.80
• Stop: Close under $54
• Target 1: $64
• Target 2: $68

My Reasoning:

For this week, I am very hesitant to want to buy tech stocks into earnings.  We just saw NFLX and TSLA get clobbered for not hitting expectations, and this week we are going to see GOOGL, MSFT, META and so many others report.

As I have been saying in my live sessions over the last week, the market is priced for perfection right now.  Missing the mark on earnings, even a little, is going to cause stocks to get smacked.

So, I still think tech stocks are going to march higher. It sounds like a good idea for me to sit on the sidelines there right now and wait to see how the earnings reports are digested.

What I am noticing is that we are starting to see more “sector rotation” happening (I’ll talk in more detail about this during the live session today) into sectors like utilities, energy, transportation – you name it.

Biotechs are still a laggard, and I don’t know why exactly, but that sector can’t seem to sustain a rally.

All that said, I am looking to get into energy stocks this week.  There are several earnings reports coming soon in that sector as well, so I am going to play the ETF, which is a single stock that owns all of the big energy firms.

This week’s Bullseye idea is to buy calls on ERX.