You’d have to see it to believe it.

One day after losing 750 points to trade war fears, the Dow tacked on more than 330 points on Tuesday, as tech stocks come roaring back.  Netflix for example was up more than $3.40.  Amazon recovered $20.

"So far, this is a reaction to an oversold condition," said Bruce Bittles, chief investment strategist at Baird, as quoted by CNBC. "What we're looking for now is an upside volume explosion" of nine stocks rising for every declining stock to confirm a new upward trend is starting out. "Unless we get that, all rallies are suspect."

In short, we’re not out of the woods just yet.  Don’t unload short hedges or start thinking a market rally is restarting.  Until we see confirmation of new uptrend, be safe.

One way to protect your money is to take wins off the table, which we’re doing today.

In fact, we’re recommending that you sell to close the second half of the FL May 18, 2018 43 calls today for up to 50% gains from an entry price of $2.55.  Hold the stock.

Open Positions:

The DIA May 18, 2018 229 put -- $3.90

The QQQ May 18, 2018 156 put -- $3.75 – exited half

The SPY May 18, 2018 255 put -- $4.80—exited half

Pro Shares Ultra VIX Short-Term Futures ETF (UVXY)-- $20.25

These are all hedges to protect portfolios from downside.  Each has seen a good share of ups and downs as the market goes from losing more than 700 points to gaining 330 points in two days.

Kratos Defense & Security (KTOS) -- $9.60

KTOS now trades at $10.21 and remains on hold.

Boeing (BA) stock -- $327.45

The stock last traded at $330.82 and remains on hold.

Dollar Tree (DLTR) - $93.70

DLTR May 18, 2018 97.50 calls -- $2.55

The stock is slowly recovering.  The underlying stock is now up to $94.90.

Foot Locker (FL) stock -- $42.65

FL May 18, 2018 43 calls -- $2.70 – exiting second half today

FL is beginning to push higher. It’s now at $44.15.

Goldcorp (GG:NYSE) -- $13

GG was opened as another hedge against market.  The stock last traded at $13.96 and is a hold.

Live Nation Entertainment (LYV) -- $44.10

LYV July 2018 45 calls – $2.65

Hold.  The stock pulled back with broad market to $37.25.

ETFMG Alternative Harvest ETF (MJ) -- $32.30
Cronos Group Inc. (CRON) -- $9.40

Canopy Growth (TWMJF) -- $22.80

We recommended these trades just recently, as the marijuana boom heats up.  Hold.  The MJ ETF is now at $27.30.  CRON is at $5.60. TWMJF is up to $21.85.

Jacobs Engineering (JEC) stock -- $63.75

JEC is back to $58.55.  We have a price target of $70.  Hold.

UPS stock -- $106.50

UPS April 20, 2018 110 calls -- $2.30

FedEx (FDX) -- $239.75

UPS is back to $105.54. FDX is now up to $241.05.  Hold all.

Parsley Energy (PE) stock -- $23.75 – exited half

The stock last traded at $28.25.  We’d still like to see a potential gap refill around $28 near-term, as the Permian Basin oil opportunity heats up.

Kush Bottles (KSHB) -- $7.85

We are continuing to hold, long-term especially as we near Canada’s plan to legalize marijuana by July 2018.  The stock last traded at $5.05 We have a price target of $10.

Daqo New Energy (DQ) -- $68.50

The stock has pulled back recently to $51 but we are holding long-term.

eCobalt Solutions (ECSIF) -- $1.45

ECSIF ran back to $1.12.  We still have a near-term target of $2.  Hold.

Tronox (TROX) stock -- $20.45

This trade remains a long-term hold on the electric vehicle (EV) boom.  The stock last traded at $17.75. We have a price target of $25.

Pro Shares Ultra Short S&P 500 (SDS) -- $45.15

This remains a hedge against the long positions.  It’s now at $41.75.

First Data (FDC) stock -- $17.80

We continue to hold with the stock now trading at $15.65.

Advanced Micro Devices (AMD) -- $13.30 entry

After running back to breakeven for us, AMD also pulled back to $9.55.  Hold.

Closed trades:

  • Exited half of Zillow Group (Z) for 8% gain on August 8, 2017
  • Exited half of Zillow Group (Z) November 45 calls for 44% gain on Aug 8, 2017
  • Exited half of CELG October 2017 130 calls for 150% on August 31, 2017
  • Exited second half of CELG October 130 calls for 143% on Sept 1, 2017
  • Exited GOLD Sept 92.50 put and 95 put for a full loss
  • Exited half of LOW September 2017 75 calls for 71% on Sept 7, 2017
  • Exited VNDA stock for 8% on September 8, 2017
  • Exited VNDA October 2017 16 calls for 35% on September 8, 2017
  • Exited second half of LOW October 2017 75 call for 92% on Sept. 8, 2017
  • Exited LOW stock for 4% on September 8, 2017
  • Exited half of FEYE stock for 13% gain on September 12, 2017
  • Exited half of FEYE Dec. 14 calls for 68% gain on September 12, 2017
  • Exited half of FEYE Dec. 15 calls for 63% gain on September 12, 2017
  • Exited half of CCL October 2017 67.50 calls for 67% on September 13, 2017
  • Exited VIX October 2017 15 put for 18% on September 13, 2017
  • Exited VIX October 2017 14 put for 17% on September 13, 2017
  • Exited ZIV stock for 2% on September 13, 2017
  • Exited SVXY stock for 9% on September 13, 2017
  • Exited AMD September 2017 13 calls for a full loss, expired worthless
  • Exited second half of FEYE stock for 16% gain on September 14, 2017
  • Exited second half of FEYE Dec. 14 calls for 100% gain on September 14, 2017
  • Exited second half of FEYE Dec. 15 calls for 89% gain on September 14, 2017
  • Exited CRUS stock for a loss of 7% on September 22, 2017
  • Exited CRUS October 2017 60 calls for a full loss on September 22, 2017
  • Exited half of AJRD November 2017 30 calls for a gain of 200% on Sept 22, 2017
  • Exited half of AJRD November 2017 30 calls for a gain of 168% on Sept 22, 2017
  • Exited AJRD stock for a gain of 13% on September 22, 2017
  • Exited half of AOBC January 2018 17 calls for a gain of 47% on Oct. 4, 2017
  • Exited half of EXPE October 145 calls for 22% gain on October 6, 2017
  • Exited CCL October 2017 67.50 calls for a loss of -37% on October 17, 2017
  • Exited half of Shopify Inc. stock for a gain of 10% on October 25, 2017
  • Exited half of SHOP November 105 call for a gain of 79% on Oct 25, 2017
  • Exited TRUE stock for a loss on November 7, 2017
  • Exited TRUE January 2018 16 calls for a loss on November 7, 2017
  • Exited half of DIS December 15, 2017 100 calls for 44% on Nov. 8, 2017
  • Exited SHOP stock for a -10% loss on Nov. 9, 2017
  • Exited SHOP November 105 calls for a full loss on Nov. 9, 2017
  • Exited DIS stock for a gain of 5% on November 13, 2017
  • Exited second half of DIS Dec 2017 100 calls for a gain of 86% on Nov 13, 2017
  • Exited half of DIS Jan. 19, 2018 105 call for 100% gain on November 30, 2017
  • Exited half of AT&T January 19, 2018 34 call for a 55% gain on Nov 30, 2017
  • Exited half of AT&T February 16, 2018 34 call for a 97% gain on Nov 30, 2017
  • Exited half of DIS Jan. 19, 2018 105 call for 404% gain on Dec 4, 2017
  • Exited half of AT&T January 19, 2018 34 call for a 177% gain on Dec 4, 2017
  • Exited half of AT&T February 16, 2018 34 call for a 139% gain on Dec 4, 2017
  • Exited half of BBY stock for an 11% gain on December 5, 2017
  • Exited half of BBY Dec 15, 2017 57.50 calls for a 102% win on Dec 5, 2017
  • Exited half of AVAV stock for a 34% win on December 6, 2017
  • Exited RGR stock for a loss of 1% on December 11, 2017
  • Exited AOBC stock for a loss of 12% on December 11, 2017
  • Exited AOBC January 2018 17 calls for a full loss on December 11, 2017
  • Exited second half of AVAV for 27% gain on December 12, 2017
  • Exited half of SQM stock for 12% gain on December 21, 2017
  • Exited half of the AT&T (T) Feb 2018 36 calls for 67% on Dec 21, 2017
  • Exited half of the MU Feb 2018 44 calls for 22% on Dec 21, 2017
  • Exited half of AT&T (T) for 5% win on December 28, 2017
  • Exited half of AT&T (T) for 13.2% on December 28, 2017
  • Exited second half of T February 2018 36 calls for 56.4% on Dec 28, 2017
  • Exited half of X March 2018 36 calls for 50% on January 3, 2018
  • Exited second half of SQM stock for a gain of 14% on January 3, 2018
  • Exited second half of T stock for a gain of 1% on January 3, 2018
  • Exited second half of T stock for a gain of 9% on January 3, 2018
  • Exited half of X stock for a gain of 8% on January 5, 2018
  • Exited second half of X March 2018 36 call for a 58% on January 5, 2018
  • Exited second half of MU February 2018 44 calls for 41% on January 5, 2018
  • Exited U.S. Steel (X) for an 11% win on January 10, 2018
  • Exited MU stock for 0% on January 10, 2018
  • Exited CY stock for a return of 7% on January 10, 2018
  • Exited half of MRK stock for a return of 12% on January 16, 2018
  • Exited half of MRK January 2019 57.50 calls for 122% on January 16, 2018
  • Exited CCL stock for 4% win on January 18, 2018
  • Exited MRK stock for a 10% win on January 22, 2018
  • Exited MRK January 2019 57.50 calls for 103% on January 22, 2018
  • Exited half of ONCE stock for a win of 14% win on January 23, 2018
  • Exited OSTK with a -30% loss on February 5, 2018
  • Exited half of CCL April 2018 67.50 for a win of 41% on February 6, 2018
  • Exited DIS February 110 put for a win of 160% on February 6, 2018
  • Exited AT&T February 2018 38 put at a loss of 26% on February 6, 2018
  • Exited AT&T March 2018 38 put at a loss of 8% on February 6, 2018
  • Exited SEDG stock for a 32% win on February 16, 2018
  • Exited half of IRBT March 16, 2018 65 calls for a win of 36% on February 20, 2018
  • Exited half of X stock for a win of 22% on February 20, 2018
  • Exited half of X March 16, 2018 40 calls for a win of 264% on February 20, 2018
  • Exited half of X stock for a win of 16% on February 21, 2018
  • Exited half of X March 16, 2018 40 calls for a win of 156% on February 20, 2018
  • Exited second half of IRBT March 16, 2018 65 calls for a win of 31% on Feb 22, 2018
  • Exited half of ETSY June 15, 2018 20 calls for a win of 44% on Feb 22, 2018
  • Exited half of the IRBT April 20, 2018 67.50 calls for 50% win on Feb. 26, 2018
  • Exited half of the FDX March 16, 2018 250 calls for a 100% win on Feb. 26, 2018
  • Exited second half of IRBT April 20, 2018 67.50 calls for a 63% win
  • Exited PLOW for a win of 14% on February 28, 2018
  • Exited ETSY stock for a win of 26% on February 28, 2018
  • Exited ETSY June 20, 2018 20 calls for a win of 140% on February 28, 2018
  • Exited IRBT stock for a win of 5% on March 2, 2018
  • Exited CCL April 20, 2018 67.50 put for a win of 73% on March 2, 2018
  • Exited half of DIA April 2018 247 put for a win of 165% on March 26, 2018
  • Exited half of UVXY for a win of 26% on March 26, 2018
  • Exited half of PE stock for a win of 17% on March 27, 2018
  • Exited half of FL May 18, 2018 43 calls for a win of 30% on March 27, 2018
  • Exited FB stock for a loss of 8% on March 28, 2018
  • Exited FB May 18, 2018 170 calls for a full loss on March 28, 2018
  • Exited DIA April 247 put for a win of 186% on March 28, 2018
  • Exited UVXY for a win of 42% on March 28, 2018
  • Exited half of QQQ May 2018 156 put for 60% win on April 3, 2018
  • Exited half of SPY May 2018 255 put for 19% win on April 3, 2018

Ian L. Cooper

Traders Daily