S&P 500 futures is trading below 10 days moving average (MA). As it has yet to close below 50 days MA, it is still healthy although the volatility has been increasing since late January 2018. With Trump’s first bomb Syria after market close on Friday, there is a high chance that the market may gap down on Monday.
Crude oil futures has been marching up steadily and breaks $67.15 resistance. There is a high chance for the crude oil futures to move up to the next resistance at around $80.
- Conservative Trader can buy to open Bull Put Spread @ $67-$66.5 June 2018.
- Moderate Trader can buy /CL futures straight with stop lost ($8% from $67.15) and profit target ($80).
- Aggressive Trader can buy $67 June 2018 Call options with stop loss 50% of the premium paid and profit target 100%-300% of the premium paid.
Gold futures shows some good strength over the past few months by forming higher low and trading above 10, 50 and 200 MA. Breaking $1366 strong resistance should present a low risk and high probability bullish trade opportunity.
Suggestion: Wait for the gold price to break $1366 before setting up a bullish trade.
Bonus Stock pick – IQIYI
IQIYI has caught my eye with it’s recent upbeat performance. Even though this stock has formed a very short base over the last 3 weeks, trader can consider to long the stock with stop loss in place.
- Moderate trader can long at $18.6 with stop loss $17.10 (8% from buy point). No need to set profit target at the moment.
- Aggressive trader can buy $20 June 2018 Call options without stop loss (means willing to loss the entire premium paid) and profit target 100%-300% of the premium paid.
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