It’s what we’ve been telling our clients, and it’s been our mantra internally over the past few weeks.
This has been the best pattern to profit from lately. Period.
It’s simple, reliable, and it just works in this environment.
I’ve been putting real money behind these patterns over the past few weeks. Here are two great examples to show you how it plays out.
First up: Micron Technologies $MU.
After a strong leg higher, $MU formed a textbook bull flag. I bought the $MU 7/18 $120 calls right in the middle of that range, betting on the next leg up.
Sure enough… boom — the stock ripped higher.
I followed my process, sold half into strength, and locked in the remaining gains this week.
Then, on the same day as $MU, I grabbed the $C 7/18 $82.5 calls for $1.00.
Same pattern, same setup, same result.
Citigroup is riding an impressive reaction rally as we speak.
But this kind of setup isn’t just showing up in semiconductor stocks and banks… we’re seeing these coils everywhere across different areas of the market
And we want to treat them all the same.
Semis. Banks. Cryptos. Euros. It doesn’t matter. We just want to keep buying these bull flags and anticipating upside resolutions.
We want to do it as long as the market continues to pay us for it.
So today, we’re going to redeploy some of those bull flag profits into fresh setups.
I think this flag in the Discretionary Sector ETF $XLY is about to pop:
Everything’s working. The most important sectors on the planet are breaking out to new highs.
I can’t imagine a scenario where discretionary doesn’t follow—even with Tesla and Amazon, which have been struggling. They are likely to play catch-up with the rest.
The squeeze indicator is showing extreme compression, so this is a good time to strike.
Here’s what I’m doing:
I’m buying the $XLY 8/15 $225 calls for approximately $2.50 - $2.80 per contract.
And if consumers are about to join the party, what about the banks?
I think Regional Banks $KRE is one of the best-looking setups right now.
Another clean coil — and the top of it lines up perfectly with the anchored VWAP from the post-election highs back in November.
If we break out here, the path of least resistance is higher toward the 70s.
If the best sectors and stocks are breaking out, why wouldn’t banks have a high probability of following suit?
And just look at our squeeze indicator. I think a big move is right around the corner.
I’m buying the $KRE 8/15 $64 calls for approximately $0.75 - $0.80 per contract.
