Look at the recovery in XLK!

XLK 06.05.2020

Today we saw XLK jump on the great Jobs report numbers to finish just shy of it’s 52 week high $102.94. The President predicted today that 2021 will be the “Best Year” for the American Economy.  This is great news for anyone trading stock and options and has sparked an almost euphoric optimism.  The President mentioned that we’ve got these good numbers already and there many States still on lock down or partial lock down.  Just wait until more States relax their Coronavirus restrictions and more businesses open.

Options Trader’s Dream

The past year has been a great time to be trading options on XLK, especially since February.   Looking at the image below you can see the massive sell-off that started the week of 2/17/2020 and bottomed the week of 3/16/2020.  Then it started recovering in a wide V shape.  You could have traded the rise going into Feb, traded the sell-off and then jumped in on the recent ride higher.  To me, this is an option’s traders dream scenario.   With many States still to open up I see more room for XLK to move higher.

XLK Weekly as of 06.05.2020
XLK Weekly as of 06.05.2020

Don’t Trade On Emotion, Trade The Evidence!

NOTE: The information above is for analysis only and is not a recommendation to buy or sell any stock or stock options. Data is not guaranteed to be accurate at time of posting. All trading involves risk. Talk with your broker or financial adviser before putting your money at risk.

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