DailyPlay

S&P 500 Market Outlook: Bullish

Bullish Trade: UAL $93.53 – Transportation

The bullish DailyPlay we chose for Tuesday, Nov 12th is United Airlines (UAL). UAL is part of the Transportation Sector (XTN). XTN has rallied 7.80% higher over the past month and its 1m and 6m trend turned bullish on Oct 11th while breaking above its bearish resistance line.

United Airline’s 1m and 6m trend turned bullish on Oct 15th and recently bounced higher off its $92 support level. With a technical score of 8 (out of 10), UAL is a strong stock that will likely continue higher.

As a stop loss, if UAL was to trade below $92 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.

View UAL Trade

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Bearish – XLY $121.34 – Consumer Discretionary

Market Outlook:
The S&P 500 (SPY) made a break above its major $302.50 resistance level last week and has continued to climb since. Markets have been propelled higher on the potential trade war resolution, lowered corporate profit expectations and a lower interest rate. Markets may continue higher but have now reached overbought with an increased risk of a short-term pullback.

XLY Trade Idea:
On CNBC’s OptionsAction show on Friday, Carter Worth suggested that the consumer sector has a risk of a pullback. The consumer sector has a few companies that make up a large weight, many of which have underperformed recently. Expecting a possible move lower on a market stumble, Michael Khouw, suggests buying a Jan $121/$113 Call Vertical for a $2.00 Debit. As of Friday’s close, these calls were trading at $1.95. OptionsPlay suggests managing risks by cutting losses if the price of the option falls to about $0.97.

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: XLY OptionsAction Video

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S&P 500 Market Outlook: Bullish

Bullish Trade: PHM $38.28 – Consumer Discretionary

The bullish DailyPlay we chose for Wednesday, Nov 6th is Pulte Group (PHM). PHM is part of the Consumer Discretionary Sector (XLY). XLY has rallied 2.69% higher over the past month and its 1m and 6m trend turned bullish on Oct 11th while breaking above its $120 resistance level. 

Pulte Group’s 1m and 6m trend turned neutral and bullish on Nov 4th and recently bounced higher off its $38 support level. With a technical score of 9 (out of 10), PHM is a strong stock that will likely continue higher.

As a stop loss, if PHM was to trade below $38 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.

View PHM Trade

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Bullish Trade – DIS $132.75 – Consumer Discretionary

Market Outlook:

The S&P 500 (SPY) closed last week at a record of $306.14. The Federal Reserve Board’s interest rate cut, relatively strong earnings reports that beat expectations and renewed optimism about trade talks with China helped drive prices higher. SPY’s resistance is $306.19 and support is the old resistance of $302.50.

DIS Trade Idea:

On CNBC’s weekly OptionsAction show Friday, Dan Nathan proposed a Disney (DIS) trade. DIS’s OptionsPlay Technical Score is a neutral 5. Resistance is about $137 and support is about $127.54. Nathan noted that the new Disney+ streaming service will get instant distribution to many Verizon (VZ) subscribers. Disney could breakout higher, especially if the market continues its bullish move.

As a stop loss on this trade, we close trades and take losses when the price of a debit trade falls about 50% from what we paid for it. TIP: Adjust the Target Price and possible closing dates on the Trade Panel below to get a feel for the trade. Subscribers, click on the image or a View DIS Trade link to get to the live panel on OptionsPlay.com.

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: DIS OptionsAction Trade

View DIS Trade

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S&P 500 Market Outlook: Bullish

Bullish Trade: CVS $66.39 – Health Care

The bullish DailyPlay we chose for Friday, Nov. 1, is CVS Health (CVS). CVS has a very strong Technical Score of 9 because it is one of the biggest and most important disrupters in the pharmacy, pharmacy benefits management, primary care and health insurance industries. And it’s not affected much by trade wars or even domestic politics. CVS is showing strength during the SPY dip to $303.33. CVS is knocking on the door of its $67.37 resistance. Support is about $65.34.

As a stop loss, if CVS was to trade below $65 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

Bullish Trade: LEN $60.19 – Consumer Discretionary

After the Federal Reserve Board Wednesday cut interest rates by 0.25%, SPY rose to a record high and closed just below its record high at $304.14. The interest rate cut gives new hope to home builders despite the impact of rising new home prices on demand. The bullish DailyPlay we chose for Thursday, Oct. 31, is Lennar (LEN). LEN has corrected for three days and looks primed to break out to new 52-week highs. Support is $59.31 and resistance is the recent high of $62.63.

As a stop loss, if LEN was to trade below $59 ​for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. 

View LEN Trade

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