We have to confess that we goofed in yesterday’s Tematica Pro when we shared the trade information for the United Parcel Service call recommendation. While we were indeed targeting the UPS January 2017 $110 calls, the link we provided was for the September calls, as was the price guidance we mentioned (At least we were consistently wrong).

As we noted in our commentary around the recommendation, we would much rather own the real January calls as they better capture the magnitude of consumer shopping in the back half of the year compared to just Back to School shopping found in the September calls.

Sometimes these things are a silver lining, and we say that given the market sell-off today that reflects renewed jawboning from the Fed over a potential September rate hike even though the data really doesn’t support it. Also too, we’ve had several companies — Sprouts Farmers Market (SFM) and Kroger (KR) — revise guidance lower citing food deflation and a nervous consumer.

Let’s continue to hold off with the UPS calls, as we are apt to get a much better price point early next week.

LET’S UPDATE OUR XLU CALLS AT THE SAME TIME

As we do that, we’ve noticed today’s sell-off is pushing our Utilities Select Sector SPDR ETF (XLU) October calls (XLU161021C00051000) near our $0.20 stop loss. Let’s get ahead of that and scale into the position at $0.22 and drop our stop loss to $0.10. As we do this, keep in mind the key catalyst for the trade is next week’s August Industrial Production report, which should show continued strength in utility production as well as tepid manufacturing activity.

Again, sorry for the confusion, but special thanks to the subscriber that pointed it out to us – at our first Tematica gathering, we owe him a tasty adult beverage or three.