Massive Put Interest in this Sector

Energy is getting punched today…

As I write this, XLE is trading at $76.45, down from Friday’s close of $78.42.

Image from wallstreet.io

China is the world’s top crude oil importer and since their economy is suffering, they will likely decrease purchasing. Shrinking demand will likely decrease prices for crude oil.

Meanwhile, Libya (an OPEC nation) is increasing crude oil production, creating a greater abundance of supply, which can also decrease the price for crude oil.

Both of these factors would push oil prices lower. So today, futures traders started shorting oil futures contracts in anticipation of bigger moves to the downside.

I expect to see continued selling in energy for now.

I don’t think energy will stay down long-term, but this isn’t a good time to go long. I will look for more strength before buying calls.

 

AAPL Earnings Watch

Apple Inc. (Nasdaq:AAPL) had a huge end to the week last Thursday and Friday.

The stock’s EPS were up 3.86% for Q3 this year.

We saw a rally into Thursday’s close from around $156.82 up to $162.51 to close on Friday –

Now, AAPL is trading even higher, around $163.19…

Image from wallstreet.io

I anticipate a reversal here in the next couple of days, but I will wait until I see confirmation of a move lower before I go short.

Here’s how I will set up a play in AAPL…

I have seen a few big money plays already in AAPL, and I might find one to piggyback this week in the Inside Money Trader room.

I will give two more trades this week – if I see SMART big money plays to piggyback.

And the next one comes TODAY.

Sign up here to get access to the room and my trades as soon as they drop.

Until next time,

Mark Sebastian

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