DailyPlay

Bullish – LULU $229.38 – Consumer Discretionary

Market Outlook:
The S&P 500 (SPY) has resumed a major push to the upside after a brief consolidation. We expect this lower interest environment and a determined China to seek a trade deal, supportive of another wave higher. We are taking a new bullish stance on the markets while positioning for brief periods of consolidation and pullbacks. 

LULU Trade Idea:
On CNBC’s OptionsAction show on Friday, Guy Adami suggested that Lululemon’s growth is set up for a continuation higher on earnings. After a 90% gain on the year, LULU is set to report earnings on Wednesday and has seen substantial growth in emerging markets and improving margins. Michael Khouw, expecting LULU to rally on earnings, suggesting buying a Jan/Dec 150 Call Calendar @ $1.65 Debit. As of Friday’s close, these calls were trading at $1.85 Debit. OptionsPlay suggests managing risks by cutting losses if the price of the option falls below $0.92.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: LULU OptionsAction Trade

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S&P 500 Market Outlook: Bullish

Bullish Trade: GPN $178.07 – Technology

The bullish DailyPlay we chose for Tuesday, Dec 3rd is Global Payments (GPN). GPN is part of the Technology Sector (XLK). XLK has rallied 3.86 % higher over the past month and its 1m and 6m trend turned bullish on Oct 10th and recently broke above its $85 resistance level. 

Global Payment’s 1m and 6m trend turned bullish on Oct 29th and recently broke above its $175 resistance level. With a technical score of 8 (out of 10), GPN is a strong stock that will likely continue higher.

As a stop loss, if GPN was to trade below $175 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.

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S&P 500 Market Outlook: Bullish

Bearish Trade: FANG $77.34 – Energy

The bearish DailyPlay we chose for Monday, Dec 2nd is Diamondback Energy (FANG). FANG is part of the Energy Sector (XLE). XLE has declined 1.17% higher over the past month and its 1m and 6m trend turned bearish on Nov 29th and broke below its $59 support level. 

Diamondback’s 1m and 6m trend turned bearish on Nov 6th and recently bounced lower off its $81 resistance level. With a technical score of 2 (out of 10), FANG is a weak stock that will likely continue lower.

As a stop loss, if FANG was to trade above $81 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.

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Upcoming Events:

Risk & Money Management of Options Trading – Thurs Dec 5th @ 4:15PM EST – Register Now

S&P 500 Market Outlook: Bullish

Bullish Trade: ABBV $87.76 – Healthcare

The bullish DailyPlay we chose for Tuesday, Nov 26th is Abbvie (ABBV). ABBV is part of the Healthcare Sector (XLV). XLV has rallied 7.98% higher over the past month and its 1m and 6m trend turned bullish on Oct 15th and recently broke above its $98 resistance level.

Abbvie’s 1m and 6m trend turned neutral and bearish on Oct 18th and recently bounced higher off its $86 major support level. With a technical score of 8 (out of 10), ABBV is a strong stock that will likely continue higher.

As a stop loss, if ABBV was to trade below $86 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.

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Bullish – COP $59.90 – Energy

Market Outlook:
The S&P 500 (SPY) has consolidated last week after making a push higher after breaking above its $302.50 major resistance level. Markets have taken a pause after digesting trade war news, Hong Kong protests and a slowdown in corporate and economic numbers. We continue to take a cautiously bullish stance on the markets. 

XLY Trade Idea:
On CNBC’s OptionsAction show on Friday, Carter Worth suggested that ConocoPhillips is set up for a continuation higher. After completing an inverted head & shoulders formation and breaking above resistance, COP is moving higher on an absolute and relative basis to the market. Expecting COP to move higher, Michael Khouw suggests buying a Jan/Dec 60/62 Call Diagonal @ $1.65 Debit. As of Friday’s close, these calls were trading at $1.63 Debit. OptionsPlay suggests managing risks by cutting losses if the price of the option falls below $0.81.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: COP OptionsAction Trade

View COP Trade

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