El Tigre Newsletter, LOTTO FRIDAY BABY

Walmart $WMT negative headlines keep coming in at the $133 price level. Why does the market not want $WMT to get above $133? 

$WMT daily time frame shows price is below all 3 EMA making this chart lean more bearish bullish. 

WMT weekly candle has rejected the 20-day EMA and is forming an evening star pattern. 

Contracts to buy:

  • if trading same-day exp; you want puts that are $1 out of the money – anything more than that is insanely risky.
  • if WMT is trading at $125 – you buy either $125 puts or the $124 puts
  • You can also trade the $120 / $122 puts for 08/12

 

$CAT Caterpillar’s disappointing earnings have created a shorting opportunity in the near term.

CAT’s price action is rejecting our ema on the daily time frame.

  • 9 day EMA = 185.26
  • As long as price stays below the 9-day EMA, I am confident in more downside to come.
  • We have very solid support at $183.36 – ideally, we will need the price to fall below 183 to start seeing some real sell-side activity.
  • 181.62 is our current price target

what contracts to trade for $CAT

  • $182.5 or 180 puts exp Friday
  • 180 or 175 puts for 08/12