Short week, with Good Friday holiday. A couple of things have caught my eye as we look ahead to next week and the all important CPI. First as discussed previously the bank stocks still are not participating in any rally. I have thought this was needed if we are really in anything other than a squeeze to set up the next leg down. Consequently I got short JPM again on Monday, as well as Uber. For Thursday I like AAPL and ARKK for the short side. First this tech led rally appears to be running out of steam. AAPL, MSFT, TSLA and GOOG account for almost the entire gain (over 90% of it) in the SP 500 index this year. But in the chart below you see AAPL break out at the top of those converging lines.
That breakout and subsequent vertical rise over three days, if very characteristic of a buying exhaustion. So look for AAPL to habve a break and retrench some of those recent gains. Currently AAPL is165.60. ARKK is clearly in a larger consolidation and appears ready to break down again. Put options are not too pricey on AARK. A vertical put spread on AAPL can eliminate any time value consideration on options, so is the favored strategy there.