Good Morning Traders
Good morning! Yesterday was a fantastic day for members of BCA as we locked in profits on our overnight swing trade from Target! Today should be no different as the new vertical call spread on Target and the calls we have on JP Morgan are up nicely in the pre market this morning.
We are looking at another green open for U.S. equities as we have had a nice bounce off major support levels in the indexes. There are no major economic releases today so we should expect to see normal amounts of volatility, making it ideal for day trades.
As of now it looks as though SPY is going to be opening above the 50 period simple moving average on the Daily time frame which is a strong indication of more bullish pressure and we will aggressively be searching for calls today! We will be watching our overnight trades closely as they are projected to run even further today so before the weekend we may be closing out and locking in profits!
Today is Day Trade Friday!! We expect to see major returns today so keep your powder dry and ready to go!
As always practice proper risk management and Good Luck!
Top Upgrades, Downgrades, Initiations, Pre-Market Movers, Unusual Options Activity, and Economic News
Unusual Options Activity
Five Things You Need to Know to Start Your Day
1. Queen dies
Queen Elizabeth II, Britain’s longest-reigning monarch, has died aged 96. She died peacefully at her estate in Balmoral, Scotland on the afternoon of Sept. 8, according to a statement from Buckingham Palace. On Saturday, Charles, the eldest of Elizabeth’s four children, will be formally proclaimed king in a ceremony dating back hundreds of years. At 73, he is the oldest person to accede to the throne in British history. Normal politics will be suspended as tributes flow in from around the world. In London, the Queen’s coffin will be placed in Westminster Hall prior to her state funeral, which will be marked by a public holiday.
2. Dollar drop
The dollar is dropping today after surging to the highest on record this week. The US currency reversed course against the euro, which is back above parity, as the European Central Bank delivered an outsized rate hike of 75 basis points yesterday and signalled there is more tightening to come. Many emerging-market currencies have also rebounded, while the yen saw a significant lift as frustration grew over the Japanese currency’s recent weakness. Haruhiko Kuroda, Governor of the Bank of Japan, told reporters on Friday that sudden moves in FX rates are “undesirable.”
3. Energy woes
Edison International warned that its southern California utility may need to shut off power to 50,000 homes and businesses to prevent wildfires, even as a record-breaking heat wave threatens the state with rolling blackouts. California is in its fourth consecutive day of a grid emergency caused by triple-digit heat. Meanwhile in Europe, energy ministers meeting in Brussels are under pressure to quickly agree measures to prevent the energy crisis triggering a financial meltdown.
4. Stocks rise
The Bloomberg Dollar Spot Index was on track for its biggest daily drop in about a month, as the euro rallied on hawkish commentary from ECB officials. Stocks and US equity futures advanced as investors assessed whether monetary tightening to tackle inflation is getting closer to being priced in. S&P 500 contracts rose 0.8% as of 6:04 a.m. New York time. Germany’s short-term borrowing costs ended the week at the highest in a decade. Treasuries held their retreat overnight, leaving the policy-sensitive two-year yield near the highest since 2007. European natural gas prices eased and oil pared some of its second consecutive weekly loss.
5. Coming up…
A busy week of Federal Reserve speakers concludes with Chicago Fed President Charles Evans, Christopher Waller and Esther George. US data include July wholesale inventories. Canada reports August job figures. European Union energy ministers meet in Brussels on Friday to discuss price caps, liquidity measures.
Stocks We Are Watching
Target (TGT) Broke and close above all simple moving averages on the daily with green candle confirmations. We expect to see this stock continue its breakout today and into next week.
JP Morgan (JPM) Price bounced off of the 10 and 50 moving averages and blew through the 20 simple moving average with a close above. HEAVY bullish price action and we expect to see nice gains on our JPM calls today
Snapchat (SNAP) After breaking and closing above the 50 period simple moving average and a cross on the MACD, we are expecting to see our shares of SNAP skyrocket over the next couple weeks. We will be holding this position longer as we picked up shares and not options contracts.
Amazon (AMZN) Bounced off of the 50 period simple moving average and closed above the 10 period as well. Higher lows have been forming since June and we expect AMZN to run for much longer. We will be holding AMZN longer as we have shares and not options contracts.