/ES has mental resistance level of 4,400 on deck.
/NQ between support and resistance here. Needs to retest one or the other this week.
Amidst the overall market turmoil led by the Evergrande crisis I’m looking forward to some of the stocks which ideally are not related to this crisis at all. Moreover, they have been beaten lately in the market even though they have a solid business model, continuous cash flow and have been growing in the Covid-19 situation. One of such stocks $FDX (Fedex Corp LTP $250.80) is going to announce its quarterly results on Tuesday. There are many positives expected from the announcement. In the May quarter they announced a revenue growth of more than 30% YoY with strong growth in earnings. The company recently announced that it is going to increase its shipping rates from January 2022. With strong parcel demands all across the globe, there is immense potential going forward. I’m looking for a possible reversal for the stock to breach $300 in the near term.
On the other hand, we know there are significant challenges posed by the Delta variant in the shipping and logistics industry and a number of ports and airlines are closed during the pandemic. The costs must have risen due to additional health compliances. So, any bad news could be further dampening for the stock once again.
Well the market certainly needs some Pepto Bismol after yesterday’s selloff. A few upset tummies I am sure. With this large move on the VIX I am looking to sell call spreads anticipating a pull back as traders get back into the market at some point. If the VIX is still above 24 I will look to STO 38 BTO 42 VXX call spread expiring Oct 15 for around a .50 cent credit. Max risk is the difference of the strikes less premium received.