With many of the slick-talking pros taking it easy and going on early vacations this week, the bulls aren’t giving the market a reason for a pullback, as the technical outlook continues to improve.
Of course, I always like to say that the bulls prefer to take the stairs higher, while the bears tend to use the elevator to the downside. However, Tuesday’s action to continued record highs officially has my near-term and February fluff targets in play: 19,200–19,325 for the Dow, 2,225–2,250 for the S&P and 5,400 for the Nasdaq.
Today, I’ve got a bullish trade on a stock that’s looking to join the all-time high crowd: Microsoft Corporation (NASDAQ:MSFT).
Buy to open the MSFT December 62.50 calls (MSFT161216C00062500) for a maximum price of $0.60.
There has been heavy buying in the MSFT December 63 calls, over 15,000 contracts on Monday and over 17,000 on Tuesday. I wanted to get ahead of the crowd, which is why I went with these $62.50 strike call options. Resistance for MSFT is at $61.25–$61.50. Short-term support is at $60.50–$60.
Publishing Note: InvestorPlace Media is closed on Thursday and Friday due to the U.S. Thanksgiving holiday. Expect your next Trade of the Day on Monday, Nov. 28.