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Stocks popped higher on Wednesday after the Federal Reserve announced its decision to leave its interest rate targets unchanged. It's kind of ridiculous that we are still spending so much time talking about central-bank action. It would be much preferable if they would just get out of the way…and signal that to markets. But, you know, it's hard for the monetary-policy elites to give up their power.
For our part, let's turn our attention to the technicals. Today I'm seeing an opportunity in Dollar General Corp. (NYSE: DG ), the $20.2 billion leader in the discount retail store category. Shares got clobbered this year along with their peers but appear to have found traction around $70 - a level that provided support at the start of the year.
The chart shows bulls setting a new base, and bears appear ready to abandon their defense.
Buy the DG Oct. 21st $72.50 calls (DG161021C00072500) at $1.95 limit, good till canceled.
Jon Markman operates the investment firm Markman Capital Insights . He also offers a daily trading advisory service, Trader's Advantage , and CounterPoint Options , a service that helps individual traders make steady, consistent profits with volatility-related instruments. Follow him on Twitter for his latest take on markets and innovation.
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