Trade of the Day: Johnson Controls International (JCI)

Advertisement

To receive further updates on this Johnson Controls International plc (NYSE:JCI) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today

While I’m certainly bullish on industrial metals, my indicators are giving bearish readings, and the action we saw last week is starting to reflect that. While the major indices are not that far away from their all-time highs, there are a few sectors that are in their own bear markets right now, such as energy and retail.

If this persists, we’re likely to see some further downside action until at least the end of September, so I’m now firmly in the bearish camp. The market’s internals have been unraveling for a while now. Although the “FANG” stocks are holding up, overall market breadth has been weakening, so Thursday’s selloff was not entirely surprising.

The legislative situation in Washington D.C. is also not looking as good for the market, as health care and tax reform seem to be off of the table for now.

So, overall I’m not overly enthusiastic about stocks, and today I’m recommending a bearish trade: puts on Johnson Controls International plc (NYSE:JCI).

Buy to open the JCI Oct 35 Puts (JCI171020P00035000) at $0.70 or lower.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading.

Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.


Article printed from InvestorPlace Media, https://investorplace.com/2017/08/trade-day-johnson-controls-international-plc-jci/.

©2024 InvestorPlace Media, LLC