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Market analysis with Options Trading Ideas TSLA, SPCE, SPY – Sep 28,2020

Good Morning folks.

In the pre market, SPY continued its upward trend and broke over the cloud Lead Span A at 332. Now the next flat line resistance is at 334.57. If we break that line and close two days above, then it s a good sign that SPY wants to go up. The next resistance is baseline at 339.27. My feel is that we may see retracement around 334.57 area

TC2000 Daily SPY Chart Sep 28,2020

GLD is 3rd day below the cloud and may get to the 167 area very soon. It is definitely bearish being under the cloud

Regarding the picks,

PTON went straight up 90 degrees from 88 to 98 plus on friday and is up in the premarket. Now, we might see retracing to 93 area before heading to 103 area. It can even go to 108 and but feel needs some time

TSLA in today chart, looks bullish than friday morning. MA 10 went up above MA 20 with the stock heading to 425 area. It crossed both conversion and baseline. Time wise, it is ripe for TSLA to go up. Technically, when it crosses 2 levels, it tends to give up one level and it is a good idea to buy at retracement. Either way, It has a great potential to go to 507 in the coming 2 weeks. Since the options are expensive, I would recommend playing a debit spread 400/500 capturing this move.

TC2000 Daily TSLA Chart Sep 28,2020

On the short side, I feel SPCE might give us an opportunity to play down side

Wish you a profitable trading day !!!!

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Steve Smith
Steve Smith
18 oct 2020

Good insights

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