The August jobs report came in a little softer than what the market was looking for as everything went down after it was released before the market opened. Most everything moved up during the day until around 1pm when Trump announced more tariffs on China. Everything immediately sank to the lows of the day and most rebounded from there with the exception of Apple. In the last half hour of trading it was announced that the tariffs will affect Apple more than expected which knocked 3 points off Apple. I expected Apple to move down before moving higher. I don't think it is done moving down as it should get below 218 before taking off to new highs next month.
Boeing was doing well this week until Friday when it went down after the jobs report. It bottomed for the day after the tariff announcement as it moved up from there. Verizon got a downgrade earlier this week that appears to be wrong as it dropped a point and made it up in a day. Verizon is a stock to hold and unfortunately not one to use with options unless it had sharp movement in one direction and expects to bounce.
EA was down and looked to have bottomed at 111 where it bounced. Today it moved sharply higher to 116 before giving back a point. Based on where it fell from based on a delay of a new game and the new games that have been released between Madden, NBA Live and this weekend's Overwatch turnament, EA should move up further by Monday and possibly for the rest of the week. I would expect it to hit somewhere between 118 and 122 by Tuesday if not Monday. I bought 115 Calls for September 14 when it was at 114 on Friday.
Facebook appears to have bounced off 160 and I would expect to see it move higher next week but may come back to retest that base if they have any negative news. I would expect positive news regarding Instagram advertising coming very soon and push Facebook above 180 in the next month. Twitter on the other hand may be close to a bottom and should bounce from this current level of $30/share, but unlike Facebook, Twitter doesn't have an additional platform to use as a wildcard like Facebook.
On to my day trade... Alphabet appeared to have bottomed yesterday as it didn't go past the bottom. It was a learning lesson as you don't expect it to reverse until you see a bottom has formed. You should never attempt to time the bottom as it will be obvious if it is to bounce. I mention this because Thursday I was early to buy a Call Option as I expected it to bounce higher, but should have waited and could have bought at a better price. I sold at a loss because it was going down further and did not have proof that it was reversing. If I did not sell that Call Option earlier, I could have sold it for a profit by the end of the day because it moved up above 1180 as that was the strike price that I bought when it was around 1173.
Now I will reference my 1 and 5 minute chart numbers with the following descriptions:
Boeing was doing well this week until Friday when it went down after the jobs report. It bottomed for the day after the tariff announcement as it moved up from there. Verizon got a downgrade earlier this week that appears to be wrong as it dropped a point and made it up in a day. Verizon is a stock to hold and unfortunately not one to use with options unless it had sharp movement in one direction and expects to bounce.
EA was down and looked to have bottomed at 111 where it bounced. Today it moved sharply higher to 116 before giving back a point. Based on where it fell from based on a delay of a new game and the new games that have been released between Madden, NBA Live and this weekend's Overwatch turnament, EA should move up further by Monday and possibly for the rest of the week. I would expect it to hit somewhere between 118 and 122 by Tuesday if not Monday. I bought 115 Calls for September 14 when it was at 114 on Friday.
Facebook appears to have bounced off 160 and I would expect to see it move higher next week but may come back to retest that base if they have any negative news. I would expect positive news regarding Instagram advertising coming very soon and push Facebook above 180 in the next month. Twitter on the other hand may be close to a bottom and should bounce from this current level of $30/share, but unlike Facebook, Twitter doesn't have an additional platform to use as a wildcard like Facebook.
On to my day trade... Alphabet appeared to have bottomed yesterday as it didn't go past the bottom. It was a learning lesson as you don't expect it to reverse until you see a bottom has formed. You should never attempt to time the bottom as it will be obvious if it is to bounce. I mention this because Thursday I was early to buy a Call Option as I expected it to bounce higher, but should have waited and could have bought at a better price. I sold at a loss because it was going down further and did not have proof that it was reversing. If I did not sell that Call Option earlier, I could have sold it for a profit by the end of the day because it moved up above 1180 as that was the strike price that I bought when it was around 1173.
Now I will reference my 1 and 5 minute chart numbers with the following descriptions:
- It might have been better that I did not make that kind of profit on that one Call Option on Alphabet on Thursday because I might have held it to be higher on Friday. Higher is where Alphabet moved after if opened below 1170.
- Based on how it appeared to be done moving down on Thursday, I waited for a sign that it was going up and bought 2 1175 Call Options when it was close to 1175.
- It appeared to stop moving up when it got to 1189 and I got out of my Calls as it moved down from there.
- Based on the upward movement 2 weeks ago, it appeared that Alphabet dropped to 1183 where it closed on Thursday and would move much higher than the prior day high of 1189. I mentioned 2 weeks ago that this is dangerous to expect that to happen as it doesn't happen like that too often especially on Fridays. I lost a little of my gains on attempting to relive 2 weeks ago miss. As a learning lesson, there is not enough movement downward to expect upward movement unless the stochastic indicated that it bottomed with little price movement downward. I sold that call for a loss when I saw it move further downward below 1181.
- From the tariff news, Alphabet moved down 10 points very quickly and appeared to want to bounce off that which it did. Based on my belief that it is going to move up for the next week since the bottom was formed on Thursday, I thought this might be a great opportunity for a bounce. Unfortunately option prices are priced higher on movement upward than when it settles even if higher on the last day of the option contract.
- It did move back to 1181 which is 10 points off that tariff low. Once again, I bought a little late or early and sold early as I did not trust it to move up higher.
Next week I would expect to see Alphabet to move higher and probably back to 1260, but don't know that I would care to hold any options over night next week as more tariff news or regulation movement from Washington could push tech to open lower before moving higher.
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