Davita (DVA) approaching resistance as the market looks weak and ready to roll over. The USD/JPY continues to weaken, which proceeds further weakness in equities in our opinion. However, we do expect at some point the Bank of Japan will threaten to intervene against the recent appreciation in the yen, which should provide a relief rally at some point.
That said, we will look to add cheap debit spreads on stocks showing strength throughout the week as we add bearish positions as well.
SELL -2 VERTICAL DVA 100 SEP 10 65/70 CALL @1.05 LMT