In the SPX, we basically had a range break higher on Friday. So far this week, we've been getting a retest - this is normal. Now, if the bulls want to push this higher for a couple of weeks, they need to hold the top end of that previous range. Resistance becomes support on a retest in healthy markets. This market is anything but healthy, but the theory still applies from a technical analysis perspective. YOUR ACTION PLAN So, with that in mind, here are the two plays I'm looking to get into... Target Hospitality (Nasdaq: TH) - This name was on my weekly watchlist, which went out yesterday morning. Today I'm "greenlighting" this trade and suggesting an option. I want to buy the February 17 $15 calls on a pullback to $14.50-$15.00, and I'll be looking for a move to over $17 - maybe as high as $20. General Dynamics (NYSE: GD) - This is a new name to the watchlist with a classic TPS setup and a great risk/reward ratio. I want to buy the February 17 $250 calls on a move to $245, stop on a daily close under $243 (very tight risk) and then look for a move higher - over $255 and perhaps to $260 - into earnings. Note that GD reports earnings on January 25... I would NOT hold these options through the earnings report. P.S. If you have any questions about my trades, feel free to contact me at feedback@monumenttradersalliance.com. P.P.S. If you're looking to see more trades like these in real time, I recommend checking out The War Room. Bryan and Karim are on fire to start 2023... with a 100% win rate on their first 10 trades! Right now they're guaranteeing you'll receive 252 winning trades in your first 12 months of membership. Click here to unlock The War Room. |
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