Sidelines Victory

Yesterday I tweaked my analysis and approach slightly. Instead of only looking at the charts, I decided to add volume analysis vs price change %, which I have done in the past, but decided to keep it moving forward.

Before I run an analysis and prep for tomorrow, I do want to review last night's prospects $AMZN and $BKNG – Now, I did hypothesized that $AMZN may have a reversal based on historical trends, which made me consider a put. At the same time, I expected $BKNG to remain flat today so let's look at each one of them today.

$BKNG

If we zoom in tow yesterday and today, we see that the price did in fact remained flat. In this case, no trade was the best option, a put or call both would've kept it stagnant or would have made me lose money with theta decay. In addition to this, we saw a slight drop in the trading volume which may mean that the next two trading days will experience a drop in price. We can revisit lightly on Monday end of day for confirmation.

$AMZN

In the above we can see that AMZN did drop in the morning, it then remained flat for the most past until 1pm, where we began to see the jump in price and saw that it reached a new high. I didn't take any puts, when I saw that it had reached $267 and didn't drop further, I realized that it had reached support. Had I purchased a put contract, I would've lost so much money as the price rocketed by $7

So I didn't trade today, but mostly because I trusted my analysis and in the moment, it didn't seem like a good trade. After hours, I am still happy I didn't. I wasn't expecting Amazon to have a reversal, but seeing it now makes me feel confident.

Tomorrow

After looking at the trading volume for all the sectors, I've concluded that the highest trading belonged to Energy, but because it isn't my favorite sector at the moment, I will look at financial (XLF) given that there is almost a 50/50 between buyers and sellers.

Citigroup

When we look at the above, we see the two day uptrend begin forming, which means there is potential for a continuation to it tomorrow. I used the same analysis as last night, and the trading volume remained high and was powered by buyers, which may continue to push the trend

Now, I still want to consider the highest returned sector, in this case XLF after XLE. So I've prepped the same analysis for AVGO

We see the volume buys coming in, and tonight alone we have an influx in change price for AVGO.

Let's see how these two waves play out tomorrow by the big sea.