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S&P/ASX 200 Consumer Discretionary IndexS&P/ASX 200 Consumer Discretionary IndexS&P/ASX 200 Consumer Discretionary Index

S&P/ASX 200 Consumer Discretionary Index

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XDJ trade ideas

ASX 200 Consumer DiscretionaryThe ASX 200 Consumer Discretionary sector, represented by the XDJ index, is displaying a bullish outlook for the upcoming weeks. This optimism is reinforced by the recent close, which held above the 20-day moving average (20MA). However, considering yesterday's lackluster performance on Wall Street, we anticipate that today's trading session might experience either a bearish or sluggish trend. Our attention is also focused on the release of the economic Core CPI data scheduled for 10 pm, which could influence price movements as we approach the end of the week. In the context of the XDJ index, our analysis is centered on the daily chart, where we are patiently awaiting the convergence of the 50-day moving average (50MA) or a potential short correction to the Fibonacci .618 level. Despite these considerations, we are increasingly confident in the current market levels. On the 4-hour chart, we observe that the price is currently holding above the Fibonacci .50 level, in conjunction with the 50MA.
ASX:XDJLong
by ShiftSwings
WES - neutral to bullish strategy : Bull Put Spread ( options) The Consumer discretionary sector is correcting in a Bull leg - it has done 'normal' correction so far in length and time; SO looking at a stronger leading stock in the sector - we have a similar action. As this places a slightly higher probability of the stock at least holding 'above' support zones below - a neutral to bullish options credit spread can take advantage of slightly higher options implied volatility for the past 30 day ( 33% vs 27%) ; and with only 14 days left on June 25th expiry can get the 'time-decay' before it closes below credit leg strike of 40.75. Bull Put spread June expiry : -15 shares @ 40.75 strike ( european) = -0.74 +15 @ 40.06 = +0.53 diff = + $ 464 premium paid no stops required as if stock expires 'in the money below 40.74, I will buy the stock after being exercised and hold for a recovery of any losses on the table whilst doing a covered call strategy for extra income & hold for dividend payment in 2 months time..... The entry strategy : Firstly, the consumer discretionary sector is down three bear bars without too much overlap, and it has equaled the largest correction recently of about -9.5%. As its a fairly strong uptrend, I anticiapte it won't drop to much further or if so, it will recover fairly quickly to AT LEAST present levels for the next two weeks.... ( neutral) This is because this sector is defensive in nature, and coming to end of June Quarter should see ' window dressing' by FUNDs on the conservative side. Stock analysis : WES has a similar corrective degree though only -7.5%, and is the 'Leader' in terms of strength in this sector. The entry signal is based loosely on 'The ANTY' which takes advantage of catching brief corrections in a larger trend. The modified Stochastic indicator shows its cycled down to corrective part of cycle creating a disparity in price to averages. I only haven't waited for 'confirmation of next day recovery because I wish to use an options - spread as ' protection rather than a stoploss, and I want to enter on a down- day to get the most oomph in the put premium I can sqeeze out given only 14 days left for time-decay to do the rest of the errosion in premium ( and thus my profit being a credit spread).
ASX:XDJ
by Aussie-scalper