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Our indicators are giving neutral readings this week, a mild downgrade from last week's bullish readings , which I think is due to the fact that the market has been in a pretty tight trading range for a while now.
At this point, however, I'd say we'll probably see some bullish trading action today and on Monday because this is the beginning of a new month, which usually has a bullish bias. There's roughly a 70% chance that the market will move up over the next two sessions, as this is the time when hedge funds and pension funds usually allocate capital to new positions.
June is not typically a great month for the market, so we could see a so-called "June swoon" as we move further into the month. At the moment, though, volatility is still very low. The CBOE Volatility Index (INDEXCBOE: VIX ) closed yesterday's session at 9.89. This says to me that not much is going to happen until volatility increases.
With that in mind, we're going to follow my number-one rule and not buck the tape. Right now, the tape is showing a breakout with bullish action, so today I'm recommending call options.
Buy to open the Micron Technology, Inc. (NASDAQ: MU ) Jul 33 Calls (MU170721C00033000) at $1.25 or lower.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
