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Market analysis with Options Trading Ideas SPY, SBUX,BYND, TSLA – Sep 30,2020

Good Morning folks.

In the pre market, SPY is in the cloud and is at 333. It briefly crossed 334 and but closed yesterday in the cloud at 332.37. MA 20 is currently at 335.11 ( has been sliding downwards) and SPY has been bouncing of MA 10 ( whic is also sliding downwards) at 329.82.

Bearish set up is being seen on the daily charts for SPY. MA 10 is below MA 20 and MA20 is below MA50. We need to be cautious. Where can SPY head next? The next support for SPY if SPY breaks through MA 10 is Ichimoku conversion line at 327.64 and Lead Span B at 319. One thing to note is Chikou span indicator is below the 26 day price which indicates not so bullish conditions for short terms

As we see, since SPY is in the cloud, we are in side ways market. It is not advisable to make strong directional trades in these kind of markets in the short term

TC2000 Daily SPY Chart Sep 30,2020

On the other hand, if we look at SPY weekly charts , we see more bullish conditions. MA 10 is greater than MA20 and MA20 is greater than MA50. Also price is above the ichimoku cloud and conversion line is greater than the base line and chikou or lagging span indicator looks bullish. One thing to note here is that price is bouncing of MA 20 and is trying to cross MA 10. It has not crossed yet. If it crosses MA10 ( 335) and Ichimoku conversion line (339), we may see bullish conditions. Will it bounce?

TC2000 Weekly SPY Chart Sep 28,2020

I think so. If we look at the weekly charts, It fell for 4 weeks. So, we may see a little choppy movement for next 2 weeks and may see a rise of SPY to get to 350 plus from October 3rd week and beyond. Still the target for SPY of 370 is very much possible in November-December time frame.

Picks for the day

Liking SBUX here. at this level. Not a big Move fro the pre market of 86.40 but can go to 88.15 and 90.1. can quickly double options if played well.

BYND has one more leg up. But needs to cool down to 158-155 area before proceeding to 175 area.

TSLA is way past due. It needs to get to 475 area and more. I may be wrong here . Is it waiting for some news.

Wish you a profitable trading day !!!!

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