DailyPlay

DailyPlay Positions Outlook:

During our Tues Morning Market Outlook session we covered how our base case is a neutral market between $300-$317 on SPY. As markets continue in range-bound price action, we take this opportunity to take profits and reduce our long exposure and position for a more neutral outlook going into earnings season next week. 

Closing Trades

• AMD – 22% Gain: Short Jul 31 47/52 Put Vertical @ $1.62 Debit

DailyPlay Positions Outlook:

As markets open higher this week on optimism from overseas, we remain below major resistance levels of $317 and $323. We take this opportunity to take profits and reduce our long exposure and position for a more neutral outlook going into earnings season next week. 

Closing Trades

• CRWD – 47% Gain: Short Jul 31 89/102 Put Verticals @ $2.85 Debit

S&P 500 Market Outlook: Neutral

Trader, 

Market Overview: Markets shrugged off COVID jitters this week, after an extremely strong quarter but muted June. It’s important to remember that markets still remain neutral and below key resistance levels at $313. Breaks below $300 put it in a bearish tone, whereas above $313 puts it in a much more bullish trend. Earnings season is coming in full swing the following week as investors start to refocus on Q2 earnings after the holiday. Keep an eye out on upcoming earnings by using our Earnings Calendar.

DailyPlay Update: As we enter a thin trading session tomorrow before July 4th, we maintain holding our short positions in HSY, SBUX, and SPY hedge and AMD, CRWD, IBB, LUV and WMT long.

DailyPlay Positions Outlook:

Markets have taken a turn lower as momentum shifts to the bearish side, the probability of a pullback has increased. Despite this, markets remain above major resistance levels and are neutral rather than outright bearish. If SPY breaks below $300-302 and QQQ below $237-240, that would put the markets in a more bearish tone. For now, we are adjusting our positions to reduce our long exposure as we see limited upside in the markets. 

Closing Trades

• LYFT – 44% Loss: Short Jul 10 31.5/36.5 Put Verticals @ $3.10
• WDAY – 27% Loss: Long Jul 17 180/210 Call Verticals @ $6.55