Review of Session: FOMC minutes did indeed prove to be a catalyst for the auction and we saw swift moves lower across all of the indexes. SPX, NDX, & RUT are all below their opening yearly ranges. Hard to be long anything directional unless we move back through that, or find support lower.
Next Session: For Thursday we have Jobless Claims before the bell and NFP on Friday. Equities are likely to have a “rest” day.
From the Quicksheet: The column on the QUICKSHEET that is growing the most today is the “Early Seller” list. These are names to avoid for the time being. Instead, focus on the names that remain on the other 3 columns, and which are not pulling back as hard as the broader indexes. Once the indexes firm, these will be names that should pop. Disney is one of those names that has a juicy target higher at last year’s VPOC at 176. Suppose you wanted to create an idea from this…
|OPPORTUNITY?||Return to 176.87|
|IDEA?||Long $DIS March 175/180 debit call spread. Return to 176 makes this $400/spread|
|RISK?||Risk on the spread is max $54/spread|
|HOW WILL I KNOW THAT I’M RIGHT?||Disney will hold 150 composite HVN and rally with indexes|
|HOW WILL I KNOW THAT I’M WRONG?||Trade below $150 likely negates the probabilities.|
TO FIND OTHER IDEAS LIKE THIS: