The next FOMC meeting is coming this week on Wednesday, followed one day later by AAPL's earnings. One or both of these news events will move the market, so early in the week expect nothing, later in the week, expect fireworks and somewhere in-between, have a game plan. Here are two (make that three - see Bonus Bet) we are following at Blue Line Trading, at least one of which will be a gangbusters winner immediately ahead.
TSLA is closing in on fresh Buy Signals on two of our technical models. "Closing In," means exactly that, close, but no cigar. This is the one stock that is on my screen all day long because if one of both of these set-ups trigger, I want to know about it in real time, and intend to send out an Alert as appropriate for both short and/or intermediate term option traders. It's hard to say what effect, if any, the FOMC meeting and/or AAPL earnings will have on TSLA, but if this Buy triggers it won't matter. With TSLA, a Buy is a Buy; no asterisks need apply.
The other trading pattern that keeps hanging around is shown in this SPY chart. An important low was made last October and the market has been climbing a wall of worry since, choppy, overlapping waves, and now a channel within a channel, refusing to capitulate to the bears while at the same time, not making much money for the bulls. Classic counter-trend corrective wave behavior, but with no clue yet as to when or even if this rally will end. FOMC and AAPL may provide the triggers needed for a reversal, but all we can do is be aware of the potential and be on the look-out for signs that those two wave 3's in the lower right hand corner of the chart have begun. Oh, but when they do, there is a massive decline just waiting in the wings, 100 SPY points, minimum, in a matter of weeks and every week going forward in May is a candidate for kick-off.
IYR - Bonus Bet - Sell Pending
One word: "Cheap Puts"