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Despite the weak performance of the major indices over the last several weeks, we still think the odds for a delayed bullish breakout this summer are very high. High-water marks in the past have not led to declines. Actual earnings contractions (negative earnings growth) have been the triggers for previous bear markets, which is not a problem at this point.

The market is probably not out of the woods quite yet, but Friday’s labor report bodes well for consumer spending. We like Activision Blizzard, Inc. (NASDAQ:ATVI) as it bounces up from support following earnings on Thursday.

Much of the volatility following ATVI’s earnings was due to an erroneous report released by Dow Jones that broke the embargo on the earnings report. The underlying data were very strong and show the company is moving past some of investors’ previous concerns about competition from Fortnite. Right now, our target is limited to the prior highs. However, if market momentum continues, we would likely move that higher.

‘Buy to open’ the ATVI June 70 Call (ATVI180615C00070000) for a maximum price of $2.65.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.