Hi Shoppers,

I can’t stand it!

I am about ready to burst.

It just amazes me how technical analysis and chart reading (same thing) can work so well.

I wrote this night of January 17th for the new Pit Report:

“If MSFT can close above $241, I think it can rally to $255.50, which has been previous resistance. 

From there, the 200-day moving average comes in at $257.40

My long term resistance that goes back to Nov. 2021 comes in at $266.65.

… Right now, MSFT looks to me like it is ready for a minor pullback to gear up for its next leg up.”

Here are the charts Jan. 17 and Jan. 24

I’ll be damned if it didn’t happen EXACTLY like I said it would.

MSFT has just announced earnings and is trading $252.

Pretty exciting, right?

Here’s something else exciting…

There is a beautiful doji created yesterday in Disney (Ticker: DIS):

A doji is found at the top or bottom of a trend and may be signaling a change in that trend.

Now we need confirmation this morning with DIS trading lower for at least an hour for this doji to pan out.

Looking at the puts, I like the Feb. 03 expiration as the earnings announcement is scheduled for Feb. 8:

There is a nice skew to the out-of-the-money puts, which means they are trading at a higher implied volatility than the at-the-money-puts. That provides for a nice vertical spread.

If DIS does trade lower, I will be a buyer of the 106/101 put spread and pay $1.50-$1.60.

The 200-day moving average comes in around $104, which may provide some support.

Below there I think DIS can trade back down to $100.

Trade Review
ProShares Bitcoin (Ticker: BITO) is trading about $.50 higher. I am still in the March 17 14 calls.

The BTCUSD chart looks to be bull flagging, gearing up for its next leg higher.

If the cup-and-handle formation is correct, that will be $26,000 in BTCUSD.

That is also pretty exciting!.

Thanks for Reading … See You Next Tuesday,

Licia Leslie