Movement to Profit

Most stocks opened higher this morning with the exception to Alphabet (GOOGL) which was targeted by President Trump before the market opened because he was not happy with the "fake news" he found when he Googled himself. I guess he doesn't understand that Google includes what you are interested in the search.

It fell so quickly and bounced from it's morning bottom that it would have been difficult to profit from Put Options this morning. It did bounce off 1246 which is $10 lower than Monday's close. That is where you could have bought a Call Option and sold it around 11am when it came close to even for the day. Unfortunately this was the only good move to trade based on the indicators.

Best Buy reported earnings around 7am this morning and it beat all of the numbers analysts were expecting, but it quickly traded down due to a lower forecast for the current quarter. Best Buy did raise their forecast estimates for the year which appeared to be ignored.

Best Buy popped early and sank quickly. It appeared to have bottomed at $75. Based on the last earnings report, it went down further the 2nd day after reporting earnings. I believe that it might not go lower tomorrow because the earnings report was so good.

I would like to buy Call Options 3 weeks out once the bottom is secure. As we saw with Alibaba retested it's bottom the 2nd day after earnings last week, it moved up and opened at 182 today but sank hard after that. I don't believe in Alibaba like I do with Best Buy so I would expect Best Buy will retest it's recent all time highs in the next couple of weeks.

Tesla went down from open and bottomed quickly at 311, ran up to 317 and down for the rest of the day finishing at 311. I just saw one good Call Option trade that made sense.

Given that Amazon had a new high today, I would expect to see more upward movement tomorrow if we don't get another tariff bomb dropped by President Trump before the market opens. 

Friday and Monday Market Summary

China appears to be preparing for a trade meeting as they have stopped devaluing their currency. The market had some nice gains on Friday as many Chinese stocks bottomed and started moving up like Alibaba. Alibaba ran up after reporting earnings on Thursday and came down sharply 13 points. It opened around 175 on Friday, came down below 173 and finished by moving up that continued Monday when it passed 180. I picked up a September 17 dated call option with a strike price of 180 on Friday. I hope it breaks through to 187 by Thursday for me to sell it.

Alphabet (GOOGL) on Friday opened higher, moved up and back down near where it closed Thursday around 1221 then went up to 1234 and finished the day above 1236. Monday Alphabet moved similar to Friday when it opened around 1244, up to 1247, came down to 1241 at 9:40am and ran up for the rest of the day. I have Friday's chart to the right and Monday's right under it.

I mentioned over a week ago that Twitter looked like a great deal under $33. It went down to $32.35 and has been up since as it closed today above $35 on it's way to 42.

Ford moved up since Thursday as it touched $10/share again today with the news about the Mexican trade agreement. Tesla moved sharply lower today but settled the day just under Friday's closing price. Analysts are saying what I said a while ago about Elon Musk should worry about making cars and hire someone to handle the public. I also said that Tesla should remain public and now Musk agrees as he posted on his blog Friday evening.