C.O.I. For The Week Of 7.22.19


SPX: Our B-wave thesis seems to have played out. We're now looking for a C-Wave to new month lows.

1st target 2950

2nd target 2910

3rd target 2875

4th target 2840

We'll see which target buyers step in at and will follow by going long all the names on our long watchlist for at least a bounce.


ADNT: Is carving out a bottom. and has been receiving big call buying of late. It's also above the 200sma for the first time in a year and a 1/2. We will go long on a close above 23, with a target of 30.


BA: Seems to be building a nice bottom. Call buying has picked up and it is above the 200sma. All bullish and ready for a long, however earnings are Wednesday. We'll wait to see what the reaction before we decide what to do. Stay tuned.


CRSP: Still holding 1/4 calls. Nice bull flag still developing. Our target remains 54.


MU: Seems to have carved out a bottom. And is starting a new wave up. An intraday move above 46 and we will go long for a move to $50.


NFLX: Is currently in a free fall, but we think there is a bounce buying opportunity. We'll be watching price action at 310 first. If we get a hammer candle on the daily, we'll go long for a bounce to the red downtrend line. If price knives through 310, we'll try to catch the knife at 290 where odds of a bounce are very, very high.


QD: Pulled back this week, but remains above the uptrend line. We continue to hold 1/2 common and 1/2 calls. As long as we hold this zone between here and the 50sma, our target is 10. Below, and we'll sell. Our stop is at 7.40.


SNAP: As predicted last week, SNAP got the pullback. We were prepared with a short call hedge and have covered those calls for profit. We are now entering the zone where it should find support. Next week is earnings, and given we already have so much profit baked into this position, we hold through it. We are still targeting 17. Our stop is a decisive move below the 200sma.


TWTR: We still are waiting for an entry in TWTR. We finally got the pullback we wanted, but earnings are Friday. We're going to wait to see the earnings results before we decide what to do. Stay tuned.


X: Continues to carve out a bottom. And continues to get call buying. We are buyers on a close above 15.40. First target 16.65. But ultimately we see a move to 20.

Charles Chao