Market Quick Thoughts

Looking at the chart of SPY, it reclaimed the 8 & 21 day simple moving averages early in the week. Although the all time high is acting as a level of resistance, it is not falling apart. It is likely we see continued consolidation until the big names come out with their earnings.

Here are two possible ideas for the coming week. If these setups trigger, then they should be good candidates for a collar option as long as there is enough volume in the options.

The first one is HSY. It has recently climbed up above the 50 day simple moving average and appears to be creating a flag. A break of the flag could propel it to $200. Earnings are in early February.

The second stock to keep an eye on is FTRE. This one has been going in the opposite direction compared to the overall market, but it is approaching a trend line that started last August. It may not necessarily go back to all time highs, but a 10% move is certainly possible.