Good Morning team.

Markets are pulling back due to more trade war jitters but this pullback has setup a couple trades in XLK and XLE.  Please keep in mind my intention is to try and hold them through earnings session because I believe these sectors will produce good earnings.  I have no idea if my assumption is correct so you may choose not to take them.

On XLK consider the SEP 68 Calls.  The 67 strike would work as well.  I will place my initial stop at $70.10 to allow the ETF a little room to move.  If it does move up we will then consider selling some calls against the position.

On XLE consider the SEP 73 Calls.  My initial stop will be at $75,00.  Once again if the price moves up we will look to sell calls against the position.

Remember all trade ideas are for your evaluation and consideration.