SPY needs to maintain $442 for next leg up.
Bearish engulfing candle needs to confirm in the QQQs.
Markets still a bit like baking a cake , mixing things up and seeing how it turns out. A lot of nothing going on in a lot of stocks this past few days. Todays trade is a earnings play ( CLOV Clover Health Investments ) . It has a large short float and it often likes to give the shorts a bit of grief as well . I will be purchasing stock tomorrow if the price is below $9.00 and then I will be selling the 30 delta call expiring Sept 17 .
Based on the pricing as i write this $8.46 , i will be selling the Sept 17 11 call for approx. .60 cents credit. Risk on this trade is the price I pay for the stock less the premium on the covered call. Max profit at expiry will be $11.00 for the stock that would be assigned and I will keep the premium as well as the capital appreciation on the stock
$CHS (Chico’s FAS Inc.) is a cultivator of brands serving the lifestyle needs of fashion savvy women 30 years and older with brands like Chico’s, White House Black Market and Soma. The stock is trending nicely above 20EMA and 50EMA for a possible break out with a gain of 7.36% on Tuesday. In the last earnings report for Q1, the revenue grew 38.4% YoY. With LTP at $6.56, there’s no immediate resistance on the price with strong support lines at $6.48. The stock has gained momentum with RSI, Stochastic and MACD pointing higher at this point and it could go up to $7.03 in the short term.
On the downside, after the recent spike the stock could take breather for a short while. If it breaches $6.48, it could go upto the next support is way down at $4.95.