Window Dressing and OpEx Spells Big Opportunities for You

 
   
     
   
 
MAR 30 2023
 
 
Window Dressing and OpEx Spells Big Opportunities for You
   
JEFFRY TURNMIRE’S MORNING MONSTER
Last Trading Day of Q1
 
 
 

Last trading day of the quarter is tomorrow and that means window dressing by mutual fund managers.

Mutual funds report holdings as of each quarter end. And they don’t want investors to see positions in big losers. So, they clean house by washing out losers and decorating portfolios with winners.

It’s all optics, of course, because this quarterly exercise does nothing to improve performance. But it does reduce the questions and doubts they get from investors.

Whatever their games, this ritual clean up – plus options expiry – can make for some explosive moves that I get ahead of with my daily Morning Monster.

Each trading day, I go live at 9:15am ET on YouTube.

You’ll want to set a daily reminder, bookmark this link, and be ready to take notes as I give you my pre-market analysis on SPX, SPY, NDX, QQQ, Russell, IWM, and other stocks that are potential plays for the day.

Plus, I take your requests.

See you there,

Jeffry
SCOTT WELSH
Tech Is Back
 

As it turns out, the banks didn’t die.

The reports of their demise were greatly exaggerated.

And Financial Select Sector SPDR Fund (XLF) is rising toward the long-term moving average:

 
 

We could see a possible Buy trade on this ETF soon.

While we wait, we need to ask a question: If the bank crisis is over, what will do well?

The answer: Tech.

When rates are low, or dropping, tech thrives. It’s easy for tech companies to get money at low rates, thus, it’s easy for fast-growing companies to expand. 

Rising rates puts a huge money crunch on start-ups (and tech in general), which is why we saw so much bloodletting in tech over the past year.

But that might be changing. Traders are guessing that the rising rate environment is changing.

And tech stocks have been soaring.

Here’s a computer software company, HubSpot, Inc. (HUBS), that’s been hot and is in one of the hottest sectors:

 
 

If it breaks above $421.50, it could go on a big run. 

The last time it broke above the long-term moving average, it rose over 300%. 

Happy trading,

Scott
LANCE IPPOLITO
[Free Live Trading in Session] Option Scanner Beta Launch
 

Yo – it’s time! Join me live right now for the beta launch of my Options Scanner. 

This is the exact scanner I use on a daily basis, and soon it could be yours, too.

Keep in mind this is just the beta launch, but you’ll be one of the first to see it so please don’t waste this unique opportunity! 

Inside, I’m going to show you how it all works and then we’ll dabble into some LIVE TRADING together. 

Get in here NOW!

Lance
DON YOCHAM
Cleveland Cliffs on Cliff’s Edge
 

No big picture, macro, Fed ranting commentary today.

Instead, I got a short-term trade I want to share with you.

Tomorrow, as Jeffry mentioned in his Morning Monster preview above, brings both quarter end window washing and option expiry.

That means action. And as I parsed stocks with high option trading volume this morning, looking for names the market is interested in, I noticed a sweet set-up in steel manufacturer Cleveland Cliffs (CLF).

 
 

Trading volume over the last 30-days in the stock is showing the potential for a big gap down to $14 or so. Volume has built to a peak at around $17.44, and then drops off sharply.

This tells me buyers are playing defense but they are backed up against a cliff. Should sellers get aggressive the stock price could quickly pass through the gap below.

Trade this one how you want, but I bought puts with a strike price of $17 expiring on May 19 (or 50 days to expiry). The delta on these are currently at .33 (negative) – which I consider the sweet spot for options – and I’d be comfortable paying up to $1.20 for the options.

A drop in the stock price to around $15.30 by tomorrow’s close would double the value of that option.

Take What the Markets Give You.

 
 
   
 

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