Happy Saturday and welcome to our Weekly Digest! We had a very volatile week in the markets with a big gap down on Monday followed by sideways action until the FED minutes on Wednesday night. As Mr. Powell came in rather dovish and balanced in his approach to tapering and interest rate hikes, the markets rallied into the close of the week and the bulls reclaimed momentum. It was a difficult week to trade. We tried to stay tactical, to book profits and look for opportunities and great set-ups. We had plenty of such trades this week and we hope you managed to follow some of them.
Please find below the best trades from this week:
$TSLA chart
$TSLA has been the best acting stock for our portfolio as it managed to show relative strength amid the downturn on Monday-Tuesday. We bought some $750 call options which we sold on Friday’s igniting candle for 300% profit. The cherry on top of the cake was the day trade on Friday through the 765 pivot as it managed to finally get above it. All in all, $TSLA is looking great from a technical perspective and we continue to be long the stock and bought a call spread for next week ($760-790).
https://www.tradingview.com/x/pK0Ga9rE/
$UBER chart
$UBER announced mid-week that it is increasing its quarterly outlook. As a result it had a gap up and we engaged this stock versus this gap. It has been a great swing trade that we continue to hold for next week. So far so good, as we managed to to book about 4 points in this name.
https://www.tradingview.com/x/cfONVd2l/
$NCLH chart
We have been in a swing trade in this name for 2 weeks now as the chart was getting very tight. We added on the gap down on Monday as the re-opening stocks fared much better than the overall market. We have been rewarded by the end of the week as the wedge type pattern resolved to the upside. We continue to be long the stock as we are bullish on the re-opening trade for the coming month. Delta peak seems to have already happened in the US and Western Europe.
https://www.tradingview.com/x/kWxqg5kN/
$SNAP chart
Snapchat had impressive earnings last quarter and it managed to defend the gap it had created. We decided to engage this name as the chart look very promising despite the overall weakness in the markets. We bought the $75 calls for October 15th and on strength we sold the $85 calls, thus creating a call spread. $SNAP managed to make a new all time high on Friday as it is benefitting from $FB’s weakness. We hope to maximize this spread by its expiration.
https://www.tradingview.com/x/pAaxeLC0/
We hope you managed your portfolio well this week as it has not been the easiest of tapes. For next week we are cautiously bullish as both the $SPY and $QQQ managed to close above their moving averages as momentum is again in the bulls’ court. Keep in mind that next week we have the end of the quarter and investors will look to rebalance their portfolios, maybe creating some buying opportunities ahead of the new monthly in-flows. Stay tactical, book profits and follow our updates. We Grow Together!
Have a great weekend!