UTX

The number of trending stocks that aren't screaming overbought is becoming quite small. Most of the ones on my watchlist have pulled quite far from their trendline and most of them still have a 2 day RSI in the upper 90s. We should be getting a pullback early this week and I will be welcoming it as it should open up some better entry points.



I like UTX here for the following reasons
- a lot of open interest on the Call side (AUG 75 and 80)
- just pulled back/bounced off 20 day MA
- still in an upward trend
- NOT overbought
- low risk (if stop is placed just below trendline)
Check out the August or November 75 Calls - if they look too expensive, finance the cost by selling further OTM calls (debit spread). A price target of 75.5 seems reasonable and if it can get through that, next stop, 79.