The S&P 500 just printed another record high today. The NASDAQ failed at resistance and closed back inside the level.
Blake Young says that split tape is telling you exactly where to position for the rest of the year.
He expects US equities to trade flat rather than trend from here. That means 2% to 5% swings in both directions without much real progress.
The opportunity is not in chasing tech into the overbought zone. Blake is rotating into three specific sectors getting fresh buy signals today.
Energy, basic materials, and consumer staples are his focus. Crude is trying to close back above the 0% level, and Blake sees a path to $107 per barrel if that breakout holds.
Even if oil stalls, energy stocks do not need higher crude to stabilize and grind higher.
Here are the exact short put setups Blake walked through in tonight’s video:
- ExxonMobil (XOM) at the 150/145 vertical. Blake likes this one ahead of May 1st earnings because the spread protects against a surprise gap while still paying close to fair premium.
- Valero (VLO) short put at 230 pays $5.75. That gives you a 7.3% margin of safety before assignment becomes a problem, nearly triple the premium collected.
- CF Industries (CF) short put at 110 pays 2.5%. Price would have to drop 13% to threaten the cost basis, and the trade collects premium before May 8th earnings.
- Dollar General (DG) short put at 120 pays 2.67%. Double the return on risk, no earnings exposure, and a Bollinger Band breakout just flipped bullish.
The NASDAQ is back inside 26488 and struggling at the 0% level. Blake says this is the place to tighten stops or take profit on tech, not add exposure.
Basic materials are basing out. Energy is getting confirmation. Staples are breaking out. That is where the premium is priced right.
