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Options Trading Ideas Notes – Sep 10,2020

Folks above are the SPY and QQQ daily charts for today. As shown, SPY has a flat line resistance at 342.57 and MA 20 at 343.08 and MA 10 at 346 and Ichimoku conversion line around 345.82. As per weekly ATR, the price can move 12 $ from a low of 332.88. So, have a feeling we may touch MA20 and retrace

Similarly for QQQ, the line is 283.47 and that is aligning with 14$ weekly ATR move from a low of 269.42.

On the upside, I see PTON going up. But, I am not convinced that it can cross 95.11 and march towards 100 unless there is a big news

If you look at the charts. It started climbing from 25% retracement and has reached almost 112.5 in 3 days which is a little bit too fast. And also, I did not see PTON touching the support of 70.30 yet before rising, Does it mean there is one more leg down? if it goes down, can it go to 68?

I was wrong in the above paragraph. PTON did indeed touch 95.11 and completed 225 degrees. What I did not see it was breaking through MA 10. Now it would move to 25 % retracement to 78. That might be a good entry point for its march to 100.

So far, FB, SQ, DOCU seem to be moving in the right direction and the weekly ATR seems to be aligned.

On the down side, I am liking WDC(target less than 35), MU(target 42.55) . These two stocks are satisfying our down trend conditions ( Below the cloud, Base above conversion and price below conversion and lagging span is below the price)

Wish you a profitable trading day !!!!

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