Dark Pool Trader Weekly Review: Why We're Expecting a Move From Microsoft

Last week, we got some sneaky Dark Pool activity on a few not-so-well-known ETFs.

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Dark Pool Trader with Stefanie Kammerman

Why We’re Expecting a Move From MSFT

Hello, Savio.

Last week, we got some sneaky Dark Pool activity on a few not-so-well-known ETFs.

Here is just one that I spotted on the iShares Russell 1000 Growth ETF (IWF).

On average, there are only about 600,000 to 1 million IWF shares traded per day, so this massive print for 3.7 million is very significant.

Below are the top holdings for this ETF.

As you can see, Apple Inc. (AAPL) and Microsoft Corp. (MSFT) are the top holdings, so I expect these two stocks to move soon.

Perhaps not so coincidentally, Apple is in the middle of a $90 billion “stock buyback explosion,” as Yahoo Finance put it.

I am loving the technical setup on Apple right now. It has been consolidating for a month and a half while the buyback has been in effect.

Put all that together… and I am bullish above $127.50 on Apple this week and bearish below $122.50. If Apple heads above $127.50 this week, I will likely send a trade your way, so watch for that.

MSFT Debit Call Spread

This morning, we put on a Microsoft Debit Call Spread.

That’s because, on June 3, I spotted some massive Dark Pool activity.

Specifically, I noticed a 3.4 million-share print at $245.18. That’s in addition to that 3.7 million-share print on the IWF, in which MSFT is the second-largest holding at almost 10% of net assets.

And according to seasonal trends, over the past 20 years, MSFT usually rises in June.

Therefore, I was bullish above $252.50 this week for Microsoft and bearish below $245… hence, our bullish trade this morning.

Another Trade I’m Watching

Let’s also keep our eye on the Coca-Cola Co. (KO) this week.

After all, even in a stock as heavily traded as Coca-Cola, it is not every day we get a 3.4 million-share print.

From a technical perspective, you can see it is hitting an upper trend line on the daily chart at $56.50.

And in terms of seasonality, over the past 20 years, Coke usually dips down near the end of June.

This week, I’m bullish above $56.50 and bearish below $55.

The best trade setups are when the Dark Pool prints coincide with the seasonality charts, but that does not always happen.

The best advice I can give you is to always follow the Dark Pool, even if it does not match up with seasonality.

The “Meme” Stocks

I know many of you have been watching the high-momentum stock moves on the likes of AMC Entertainment Holdings Inc. (AMC), BlackBerry Ltd. (BB), and Bed Bath & Beyond Inc. (BBBY). These stocks have made for some incredible day trades.

But now we’re getting quite a bit of Dark Pool activity on AMC.

So, now I’ve got enough data to say that, this week, I am bullish above $61 and bearish below $42.

Along with our open trades on gold, silver, and oil, those are some of the stocks I have on my watch list for this week.

If we make a trade on any of them, you’ll be the first to know.

Until next time…

Happy trading,

Signed: Stefanie Kammerman

Stefanie Kammerman,
Editor, Dark Pool Trader

P.S. If you haven't already, I recommend signing up for our text service. Every week, I'll send you via text one to three trades to make. While I also send my trades via email, I send the texts first, and they are where I'll "mark" our entry and exit prices.

InvestorPlace

Jun 07, 2021 14:31:44.744

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