New Money Link Trade Alert:
Hey guys,
I’ve got a new swing trade for you this morning!
But first, let’s exit the following swing trade before jumping into the new one:
SELL TO CLOSE XME AT $37.80 OR HIGHER.
BUY TO COVER XLE AT $49.50 OR LOWER.
SELL TO CLOSE XME 03/19/21 $33 CALLS AT $4.90 OR HIGHER.
SELL TO CLOSE XLE 03/19/21 $44 PUTS AT $0.40 OR HIGHER.
And now, for our new swing trade, let’s:
BUY TO OPEN QQQ AT $315 OR LOWER.
SELL SHORT IWM AT $217 OR HIGHER.
And for an options play:
BUY TO OPEN QQQ 04/16/21 $320 CALLS AT $15 OR LOWER.
BUY TO OPEN IWM 04/16/21 $225 PUTS AT $13 OR LOWER.
Much has been made about how hot tech has run and how it's now time for a cool-off. But if you look at the chart below, the red hot stocks are all in the Russell 2000 or IWM. It’s very popular for the talking heads on TV to champion Main Street these days, and I like to zig when they zag.
The Nasdaq is up 4% year to date, and the Russell 2000 is up 13%. If things get more bearish, expect the Russell to collapse (as we saw heavy selling there this week). If things go sideways, I also think the Nasdaq will outperform. And if we see a strong rebound, it should be because of bargain hunting in the tech space.
Remember, it’s important to execute both sides of the link at the same time and to respect the limit levels mentioned above — never chase a trade.
LFG!
Jeff Zananiri
Joy of the Trade