Consumer stocks were under tremendous selling pressure today, as TGT reported dismal earnings. TGT sank over 25%. A week ago, I wrote an article, saying that "[d]iscount stores such as DG and DLTR [we]re starting to see some weakness".
On May 10, we got into DG puts, and just yesterday we added DLTR puts. Today, these puts scored huge profits:
DG 230 puts locked in almost +340% profit. DLTR 160 puts rendered an "overnight" profit of +260%! You can subscribe to these trades by click on the link: here.
On May 12, I also mentioned that MCD was under selling pressure. MCD fell more than $8 intraday today. COST also dropped lower, losing more than 10%.
After 3 days of bouncing higher and consolidation, stocks resumed its descending trajectory. Today's quick fall was quite big. I think we might see some buyers rushing in again, but, selling pressure will likely prevail, which could bring more choppiness in the next couple of days. SQ has been rebounding strongly and held up rather well today. Solar stocks are finding some buyers and, at the time of this writing, they are staying green. It's a bit difficult to chase the downside right now. Let's see how the SPX does with this 4000-3970 range.