The weekly risk/reward setups were put together on Sunday morning, pre China / US Tariff headlines. Understand that implied volatility of options will now cause options premiums to become more expensive. I am planning to target calls in IWM, KRE, and possibly KWEB. Wave counts will be updated midweek.
Post late March earnings, LULU gapped up on heavy volume and ever since has been walking a steady uptrend higher. I see no reason why this doesn’t continue and any pullback to, or just under the trendline should be bought. This is as simple as it gets and has a high probability of success.
I didn’t set out to find stocks this week that all are working off a gap higher, but it’s turning out that way. VRNT same story. That massive volume on the gap up is likely to hold the stock above $57. This may need some time to wedge lower, but ultimately it should resolve higher.
I haven’t spoken much about crypto currencies in this letter in the past, however a setup is a setup. Where there are price and volume, it is all the same to me. I like the falling wedge breakout of LTC/USD and I think we see it come in a bit and it will be primed for a move higher. I have been in BTC, ETH and LTC for over two years now and sentiment became so poor they warranted a look recently.