Five Trades I Love in This Market

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WHAT A DAY! In last weekend’s Weekend Wall Street I outlined these four levels as a trade plan and guide for this week with $349 being the downside extreme for this week and the bounce we got from there was just spectacular. One of the greatest displays of strength I’ve ever seen from bulls in my life.

The question is- will this rally last? To me, the answer the next few sessions will be yes with a price target of $374 on SPY 0.00%↑ as we closed above the bullish trigger level.

Over the last three months, small caps (represented by the IWM 0.00%↑ ETF) has been outperforming the S&P 500 (represented by SPY 0.00%↑ ). They are actually positive net gain while the SPY 0.00%↑ was -3% overall.

This leads me into another point, if they have so much strength when the market is weak, I can believe that they are going to outperform when buyers step in on this bounce.

Below I have outlined two large cap options ideas and three small caps that I think can run:

Long TSLA 0.00%↑ . Tesla has had a lot of selling these last few days dropping the RSI to levels we hadn’t seen until the March 2020 dip! This leads me to believe, along with the strong bullish outside day candle that this name will be a great contender for a bounce this week as there is huge demand at the 215 level. The call flow was absolutely great as well today with huge buyers all day today with some trader-hedge fund hammering the 500C (way OTM) for 2024. My favorite flow was the Buyer 459 TSLA 0.00%↑ 240C 10/21 @ 3.35 sweep for $154K. I like these options to play the bounce. PT 235 SL 218.