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Six sectors ended in the green on Monday, with financials — an area I’ve mentioned was undervalued — leading the way higher, along with energy, while technology, utilities, consumer discretionary and consumer staples finished the session lower.
Energy stocks rose by 2% at the start of the week as the price of WTI crude oil jumped above the $47 per barrel level, although today crude is down by more than 1.2% ahead of the opening bell. Tomorrow, the market will get the latest readings on chain-store sales, mortgage applications, job cuts and employment, international trade, jobless claims, consumer comfort, PMI services as well as inventory reports for both crude oil and natural gas.
So, while it has been a quiet week so far, the market is likely to heat up as we head into the coming weekend. One bearish opportunity I’m seeing now is in the retail space, specifically involving Costco Wholesale Corporation (NASDAQ:COST).
Buy to open the COST Aug 150 Puts (COST170818P00150000) at $1.55 or lower.
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