Some ideas For Next Week.

SPY came in tested its 10 day had everyone and their mother saying this is the start of the correction/pull back and then ripped faces on Friday, crazy tape for sure.  SPY looks great what else can you say we had our half percent pull back now back off to the races?  Who knows.

Posted this a few times here and on twitter with the thought that a similar pattern was forming and had potential to repeat itself and this is still on the table as it continues to look similar.  

On to some set-ups for next week.

YUM has been in rough shape as they gave two separate negative updates in about a month long time span, and with earnings approaching next week today we saw what looked to be some Feb. put selling, which is bullish positioning into earnings.  So something to watch as it could break out of this down trend into earnings and run.  Or after of course.

PETM, I highlighted the unusual put buying in this name days or a week or so ago and this chart is the weekly showing a 8.5% decline, and those put buyers are getting paid large.  They are sticking with the trade as well with all the puts in OI i think the trade was the march 65-60 put spread.

PWR should be on everyones radar as a short idea, in my opinion #1 short set-up right now.  Bearish engulfing today.  2100 feb 29 puts 10K feb 28 puts and 6K in OI combined, March 28 puts 2300 & 2K 29 puts in march in OI.

CMG looks great here for a run back to 350 area, but earnings are tuesday evening, but one I will be looking to scalp on Monday and Tuesday.

Another very bullish chart here in SBH this is the weekly and is also one I am interested in if it shows strength next week.

GILD looks bullish here as it began to break out of friday, the weekly sets up well too and on Friday saw over 20,000 calls bought with notable buying in Feb strikes including about 6000 in the money and 5000 April 41.25 calls purchased as well.  Earnings are early next week and it is something I will look at after the report.

VALE is not a name I am a big fan of but it actually sets up here pretty well, although there was a bearish piece in Barrons this week on Brazilian stocks, which might put an early damper on this parade, but well see.  There were large call positions taken in march 20 calls for 6K & 7K feb 21 calls.  If you were going to play this one I think the Feb 21's at .19 seem awfully cheap here and a good way to participate.  Options activity of note I have seen be very wrong many times before.  Only interested in a scalp here and maybe a runner.

QCOR looks this thing is obviously a mess and I despite taking some rather larger risks in my trades I am not into news driven stocks and add in a news driven pharma and I have zero interest.  But there are smart people out there that understand these things and the news thats driving them so it is worth noting 2500 feb 28 calls being bought on friday and 6000 in OI.  Earnings are before expiration and it is definitely a name that has over 40% short and could run huge, just not my thing.

Look breaking out of bear flags on 150 point up days, not exactly a stock you want to be long and i think through fridays lows this is a great short play.  Nothing notable in options just scattered put and call buying but pretty much even and no bias one way or the other, but looks like a short to me.

VECO looks great here for a gap fill, and like it through fridays highs.

EOG has been incredibly strong and today saw call buyers active in march 1000 130's 2200 140's and 5000 150's.  The 150's are the most unusual but what it looks like is a trader put on 2200 140-150 ratio call spreads here.  Either way very bullish action and a sandbox I am interested in jumping into, the 140-150 call spread trades for $1 offering 10-1 my plan will possibly be to do that with the intent of creating the ratio spread later.

WTW shares will try to put in another higher low and rebound but obviously not much to like here, I am mentioning it as 3000 Feb 60 calls traded and I assume for earnings.  So we all know about the play made a few years back where WTW went from like 40 to 85 and some guy bought some absurd amount of calls right before that maybe 6000 or something so worth noting.  If you were going to play it make sure the earnings are confirmed other wise you will get IV crushed if they say earnings are after expiration.   If Jessica Simpson werent pregnant I would play this one... :)

ANF since last earnings beat shares have been steam rolling higher and are now setting up again here looks great through Fridays highs.

Not much of a smaller cap player myself, but this one could be interesting through the 20 and 50 day nice bull engulf on friday I would watch this.  Its a bit thin so be careful just noticed that.

Didnt close real well on friday but through those friday highs could be playable.


Been getting a bunch of inquiries about the service for bringing trade strategies straight to your screen, and I should have a post up about it by the end of next week.


Good Luck!