SPY on deck to break highs.
365.49 highs on deck in the QQQs.
There’s a nice EMA Crossover setup for $CRM (Salesforce.com Inc LTP 248.28) with 5 Day EMA crossing over both 20 Day and 50 Day EMA creating a bullish pattern in last 3 days. If tomorrow the price crosses over 250 breaking the immediate resistance line created by previous highs, then it has a strong upside ahead till the next resistance at 268. The earnings are still a month away and this bullish momentum backed up by rising Stochastics from oversold region and upward RSI could potentially continue for another few days. Fundamentally Salesforce is a great company with no immediate rivals in their core CRM product line and happy customers all around.
On the downside, the immediate resistance line at 250 could create a temporary pullback with reduction in volumes in next couple of days. The next support line is at 240 below the 50 days EMA and that could delay the recovery from the recent lows.
ROKU has been showing good upward action since the recent pullback and has come into an area of resistance on a downward sloping line drawn from the highs on 6/30 to the high of the price action on 7/12. I’d need to give it some room to go above the line to reduce the chance of a failed break, so the line in the sand for me is $425. On a move above $425 I would consider a $425/$430 call debit spread in the August monthlies. I’d look to take profit on a break of $440 and stop out if we retrace under the resistance line. As always, my max loss would be what I pay for the spread.
Market has rebounded nicely after the big drop on Monday I will be looking to initiate a bullish position on INTC , It has been in very tight consolidation for the past two months with support around 54.00 and resistance around 58. Stochastics on the daily as well as the MACD are suggesting possible upside potential. I will be looking to set up a broken wing butterfly credit spread with my bias to the upside and place a 56/52 put credit spread and sell a 56/57 call spread if the pricing is around the $56.00 area on Thursday open. I should be able to get around $1.95 credit for an entry . This will be a no risk trade to the upside and give us downward protection to $54.05. I will look to take this trade off for around $1.05.