DailyPlay – Portfolio Review – August 30, 2024

DailyPlay Portfolio Review

Investment Rationale

Equity markets have responded positivity to the GDP numbers and the NVDA earnings, with the S&P now within spitting distance of the all-time highs. Investors will now turn to the labor market data next week to gauge the shape of overall economy. Consumer spending has been more resilient in 2024 that expected, however recent Fed data seems to show a cooling labor market, which could start to affect spending in the last quarter. We are going to take a pause from entering new positions and monitor our existing ones. 

Our Trades

CSCO – 49 DTE

Bullish Debit Spread – Breakout above its key $50 resistance level is constructive for a continuation towards our $52.50 upside targets. 

ETN – 21 DTE

Bearish Credit Spread – Testing $300 resistance, a breakout above would invalidate our trade thesis and warrant cutting losses on the trade. 

LULU – 28 DTE

Bullish Credit Spread – Earnings report pushed the stock above $270 and should flip this to a profitable trade today. 

MAR – 35 DTE

Bearish Credit Spread – Testing $234 resistance level, a breakout above would invalidate our trade thesis and warrant cutting losses on the trade. 

PYPL – 49 DTE

Bullish Debit Spread –  Positive momentum pushes PYPL towards our $75 target and look constructive for further upside. 

SHOP – 28 DTE

Bullish Credit Spread –  We’re looking for $72 support to hold and for SHOP to continue onto our $80 upside target.