 |
Strong economic data, mergers and acquisitions and lower oil prices sent the market on another rally. Volume was heavy on both the Nasdaq and NYSE. Tomorrow, should we open long positions? Wait and re-evaluate your strategy after the FOMC announcement. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Monday, October 31st with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Well team, oil prices are dropping. Today we got some fairly favorable economic data with consumer spending coming in at forecast and at the same time personal incomes came in well above expectation. Also, the Chicago Production Management Index came in higher than expected. All the positive news sent the market higher on higher volume. If you have a bullish tendency towards you then you like what happened today because when you get a price increase on heavy volume you have price movement with validation. If you rewind to the price gains that were made last Monday, volume is what lacked. And you saw what happened on Tuesday, Wednesday and Thursday. We are now above those miles stone levels in each of our three indexes. The Dow is above 10,400. The Nasdaq is above 2,100. And, the S&P 500 is above 1,200. The question of the day is… can we sustain that for the week. Time will tell, but that would be monumental. In the meantime, we’re sticking with our neutral / bullish trading bias. Still more neutral than bullish. Tomorrow the Fed announces another position on interest rates. Team, their actions matched with their words can make or brake tomorrow’s market. My Techne January 55 Calls closed down with a bid price of $2.50 per option. I’m drawn down by 58% into my initial investment after 27 days. My Apple January 55 Calls closed up with a bid price of $6.00 per option. My return on invested capital is 22% after 11 days. My Google January 350 Calls closed up with a bid price of $38.00 per option. My return on invested capital is 43% after 5 days. Here is my recommendations team. First, the big news tomorrow is the Fed verbiage that will accompany their rate hike. Only after that announcement is made and the market digests it, which will be in minutes after, will I consider opening any trades. In the meantime on options in my portfolio I am placing tight trailing stop loss alerts – like around 15%. Even on those that are under water. And, in addition for those under water, I’m placing sell alerts at break even. The idea is to holistically come out above water if you have to irradicate your whole portfolio because the market takes a dive. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
A strong Q3 GDP sent the broad market on a rally. Volume on the Nasdaq was heavy. The NYSE had lighter volume. The trading bias is more neutral now than ever. How do you trade when the broad market is neutral? Lower your profit targets, trade faster and look for charts that stand on their own. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Sunday, October 30th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from this past Friday and last week as well as prepare you for watching the market tomorrow and this upcoming week.. A very positive 3rd quarter gross domestic product number set the pace and direction on Friday. For the large caps, as they are measured by the Dow and the S&P 500 that meant recouping all the gains we had seen on Monday, even after giving them all back throughout the week. For the small caps it meant coming back into positive territory for the week. Interestingly enough, it was on the NASDAQ exchange that we saw an uptick in volume. On the NYSE, we actually saw volume subside. For the week we actually can start to picture, if we try hard enough, that we hit a bottom three weeks ago and that we are on our way back up. But, really at this point, that is a little bit of a stretch. The next week can either further qualify that or discredit it. All in all, the index charts are still telling us to take a neutral approach to the market. We’re going to leave our trading bias at neutral / bullish based on the bottom we saw a couple of weeks ago. But, I’m urging everybody to trade more neutral than bullish. Trading neutral means lowering your profit targets and expectations, being faster on your entries and exits and picking underlying stock charts that can really stand on their own – meaning the entry and exit signals are so prominent and strong that whether the broad market was against them or with them, the stock would still perform as expected. My Techne January 55 Call closed down with a bid price of $2.60 per option. I’m drawn down by 57% into my initial investment after 24 days. My Apple January 55 Calls closed down with a bid price of $4.10 per option. I’m drawn down by 16% into my initial investment after 8 days. My Google January 350 Calls closed up with a bid price of $29.50 per option. My return on invested capital is 11% after 2 days. Here is my recommendations team. First, earnings season is over so we will see the volatility subside. Watch for profit taking on Monday especially if the economic news is negative. Wait till the afternoon to take a reading of the market. At this point team we want to trade only sure things. The charts need to be very confident. How will you know? They will be the charts you personally feel very comfortable with. Trust the hairs on the back of your neck. If you have any doubts, save your money for another trading day and paper trade instead. That’s the best thing about trading… we don’t have to. It’s when we have to that trading controls us instead of us controlling the trading. When the trading controls us, we loose. When we control the trading we profit. No different than any other scenario in life, right team? Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Poor earnings and down economic data send the broad market declining today on lighter volume. Small caps led. Tomorrow's strategy? Concentrate on your own portfolio versus looking for new positions. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Thursday, October 27th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Unsettling earnings sent the market on a tailspin. The small caps led the decline. Volume subsided by some degree across the board. Heavy volume means our institutional traders are selling off. That is definite bearish sign. For the most part, all the gains on Monday have now been erased. The weekly chart, if you think about it, with it high intra week high and then a close at or below last weeks close will be either a Lincoln’s hat formation or a key reversal down formation, both which signal next week to be a down week. Tomorrow will be an important day in this determination. And with the Gross Domestic Product news being released, it’s sure setting up to be an exciting one. My Techne January 55 Calls closed down with a bid price of $2.85 per option. I’m drawn down by 53% into my initial investment after 23 days. My Apple January 55 Calls closed down with a bid price of $4.60 per option. I’m drawn down by 6% into my initial investment after 7 days. My Google January 350 Calls closed down with a bid price of $27.10 per option. My return on invested capital is 2% after one day. Here is my recommendations team. Watch tomorrow closely especially for the market’s reaction to the third quarter Gross Domestic Product number. Looking for new long or short entries tomorrow is a little risky. Concentrating on your own portfolio might me more prudent. My reaction is to elegantly exit all positions in my portfolio. That means limit sell alerts for break even on underwater options. Stop loss alerts at break even for options below my profit target. And, tight trailing stop loss alerts for options above my profit target. Tomorrow will be fun, but more fun will be evaluating the weekly charts after tomorrow’s close. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Spike in yield on 10-year treasury bond. Hawkish fed. Indexes drop on heavy volume although still above key levels of support. How do we navigate this neutral market? Lower profit targets and expect shorter duration trades. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Wednesday, October 26th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Well team. The nomination of Bernanke as the Fed chief is sending ripples through the bond market. And, that in turn is starting to effect the stock market. Although the stock market resumed this morning with yesterday afternoon’s bullish rally, the bond market hinting at inflation woes and expected aggressive reactions by the Fed especially with Bernanke coming in, as well as some poor earnings results today... had the market close at its intraday lows. And, volume ticked up again from yesterday. From a technicals perspective we are still within our levels of support and resistance. So, there is no need for us to question our trading bias right now. Neutral bullish is where it should be. At this moment; probably more neutral than bullish. My Techne January 55 Calls closed down with a bid price of $4.20 per option. I’m drawn down by 30% into my initial investment after 22 days. My Apple January 55 Calls closed up with a bid price of $5.50 per option. My return on invested capital is 12% after 6 days. I bought Google January 350 Calls at $26.50 per option today. They closed up with a bid price of $28.00. My return on invested capital is already 6%. Here is my recommendations team. We are definitely in a neutral market. We want to watch our broad market indexes that they don’t venture below levels of support. We also want to watch to see if they close up above those magical levels of psychological resistance. 10,400 for the Dow. 2,100 for the NASDAQ. 1,200 for the S&P 500. In the meantime, anything goes. When I say that, I am saying to you that you need to expect less profits and you need to expect shorter duration trades. I’m not saying become a day trader. I’m saying that if you want to play this market you’ll need to be a little more active and diligent watching your portfolio at least once a day. This is also when you want to err on taking profit rather than holding out for higher potential gains. In fact, tight trailing stop losses when your trades are above your profit targets and break even stop losses when below are critical in this type of market. And, setting limit sells for underwater options. This is the time when a lot of people sit out and paper trade. That is completely acceptable. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Consumer confidence came in lower against expectations. Oil ticked higher on forecasts of cold north-east. The indexes closed lower on slightly heavier volume. Will we give back yesterday's rally? Look for the indexes to maintain levels above psycological support. free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Tuesday, October 25th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Team, despite the less than stellar consumer confidence report and some poor earnings coming from HMO insurers, the broad market held on remarkably well to the gains from yesterday. Today could be hardly called a distribution day. There wasn’t enough downward price movement. And, volume was only up slightly. What looked like happened to me was, the market opened with profit takers looking to cash in on the price gains from yesterday. As they sold their shares, prices dropped and the broad market retreated. But, as the day rolled on, it seems like the bulls roared again and although they didn’t buy enough to keep the broad market from loosing, they did buy enough that the indexes for the most part closed only slightly lower versus really low which is where their afternoon lows were. And, if the bulls showed up toward the end of today, then it will be probable that they will show up tomorrow morning and continue raising the market higher. We’d like to see the small caps lead again. In fact, we would like to see the DOW sustain above $10,400, the NASDAQ sustain above $2,100 (which it is) and the S&P 500 sustains above $1,200 – all psychological levels of resistance. Then, and only then, will we feel that the gains from Monday were permanent. Fair, team? My Techne January 55 Call closed up with a bid price of $4.40 per option. I’m drawn down by 27% into my initial investment after 21 days. My Apple January 55 Calls closed down with a bid price of $5.00 per option. My return on invested capital is 2% after 5 days. I sold my Google December 310 Calls at $42.50 per option. My return on invested capital came to 201% after 5 days. Here is my recommendations team. We need to look for the broad market to attain and maintain those psychological levels of support before we look to open any more long trades. Again, those levels are - $10,400 for the DOW, $2,100 for the NASDAQ and $1200 for the S&P 500. Till those levels are attained, for me, sitting on the sidelines is a really comforting thought. For stocks in my portfolio, I'm looking to liquidate them at a profit using stop losses for profitable trades and limit sell orders for unprofitable trades. That's my strategy for tomorrow. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
The broad market rallied today. Volume on both exchanges was light. Wilma spared the gulf, oil prices drop. When will we know if today's advance will stick? Always look for volume validation. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Monday, October 24th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Not much for me to say today in my opening comments. The market went crazy ape bonkers, for lack of a better phrase, over the nomination of the new Fed Chairman. But team; look closely at what happened to see what the market was so excited about. Here’s what I want you to look past the price gains to see. First I want you to look at what happened in the bond market. The 10 year long bond’s yield shot up 6 basis points. What does that mean? It means the market believes the new chairman is hawkish about raising interest rates. Second I want you to look at the volume. Rather than the volume increasing to show a sign of support or validation for the price movement, it actually declined by a lot. What can we infer? Perhaps that although the broad market masses endorsed the new Fed chief nomination, the more important institutional traders are skeptical. Here might be a better take on what happened today. The U.S. market is very jittery right now. There is a lot going wrong fiscally with the U.S. government right now and everyone knows it. The market watched how the latest U.S. Supreme Court nominee was picked and was recoiling in fear that a similar strategy might be used to select the new Fed chairman. Instead, the gentleman that was selected was the one that was expected. So, today’s rally seems really more a sign of relief that something went as expected. The rally does not seem to be a vote of support. We’ll see how the week and the months leading up to Greenspan’s departure go before we draw our conclusions about how the new U.S. Fed chief will be perceived. My Techne January 55 Call closed up with a bid price of $4.20 per option. I’m drawn down by 30% into my initial investment after 20 days. My Apple January 55 Calls closed up with a bid price of $5.40 per option. My return on invested capital is 10% after 4 days. My Google December 310 Calls closed up with a bid price of $44.00 per option. My return on invested capital is 212% after 4 days. Here is my recommendations team. We need to be leery of today’s price increase on minimal volume. And we need to be aware of the consumer confidence report that is going to be issued tomorrow. Once the morning has passed, we will be able to see where the market will go. Look for volume to validate any movement. Most importantly have tight stop loss on your trades with high profits already. And, set stop loss alerts at break even for trades with just a little profit. That’s my strategy for Google and Apple. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Indexes were mixed. Earnings of single large cap stocks weighed heavy on indexes. How can you evaluate the broad market when the indexes are so heavily influenced? Evaluate advancers versus decliners in the watch list updates. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Sunday, October 23rd with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from this past Friday and last week as well as prepare you for watching the market tomorrow and for weeks to come.. Friday was all about driving the broad market with big winners and losers. Caterpillar, a mega large cap industrial, missed their earnings big time. Caterpillar had a substantial drop. It took the Dow Jones Industrial Average with it. Google on the other hand, beat expectations hands down. Google shot up to a new high taking the NASDAQ Composite index with it. But, because these big losers and winners had such influence on the indexes, it kinda threw off our system for understanding the broad market. On, Friday the indexes were just not representative of the broad market. So, we fall to our back up. We look at the number of advancers versus decliners in our watch list and we actually see that the advancers won out on Friday. What’s really interesting this week, team, is taking a look at the weekly charts for the indexes. These charts, instead of giving us an idea of what to expect over the next weeks to up to 6 months from now gives us an idea of what to expect over the next month to up to 2 and a half years. And, although we got indication last week that we’ve got a confirmed rally (and then with the breakouts we got on Friday we got further validation) we also got key reversal down patterns in the weekly charts for the Dow Jones Industrial Average index as well as the S&P 500 index. That tells me team to watch closely for 2006 and 2007 for there is some pretty prevalent long term bearish pressure. My Techne January 55 Call closed up with a bid price of $3.70 per option. I’m drawn down by 38% into my initial investment after 17 days. My Apple January 55 Calls closed flat with a bid price of $4.90 per option. My return on invested capital is 6% after 1 day. My Google December 310 Calls closed up with a bid price of $36.60 per option. My return on invested capital is 160% after 1 day. Slam dunk. Here are my recommendations team; There is no big news scheduled for Monday. That usually means the lemming investors will be running in circles and the institutional traders will be sitting out. We have more earnings reports. Energy stocks will start coming in this week and will for sure bouie the market. I’m going to wait through the morning before even thinking of opening a trade. In the afternoon, if there is a position I’m interested in and the market and/or the sector is going my way, then and only then will I consider it. If not, sidelines it is. And, for those of you that followed me into Google, a tight trailing stop loss alert is needed here. Like 15% Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Oil prices dropped again. The indexes dropped as well on lighter volume. Today we had a correction in which an opening for a new market leader sector became available. Are the bears back? Trade cautiously tille a trend develops. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Thursday, October 20th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. So, what happened? Why did the bears come back out? Take a moment team and do an investigation. Let me give you hint. Look at the commodities. Look at raw materials and energy stocks. They pulled back significantly today. The large cap leaders were composed for the most part by these commodity related companies. So, when they took a dive today, so did the broad market. But look closely, especially at the latest update of the TradingTrainer.com watch list. If you look at just the number of advancers versus decliners, it wasn’t all bearish. In fact, technology stocks had some what of a good day. So do we reverse our bias? That’s the million dollar question. At this point, I say no. Here’s why. Volume was lighter today telling me that the sell off was a correction. Also, by delving deeper and seeing that it was the commodity related stocks that were being sold off, that is actually something of merit if you are a bull. See, we’re talking about the U.S. market here. And, for the last nine months or so commodity type stocks have been leading the broad market. That’s really not the U.S. forte. In fact commodities can really be done better elsewhere. The U.S. strength is in innovation and cutting edge technology. So, if anything, today’s churn in the broad market, a correction if you will can be seen as getting the U.S. back on track with what they’re good at. It’ll be interesting to see who the upcoming leaders will be now that this pull back occurred. My Techne January 55 Call closed flat at $3.50 per option. I’m 42% into my initial investment after 16 days. Today I did some bargain shopping and opened two new long positions. I purchased Apple January 55 Calls at $4.90 per option. At close, the bid price was up at $5.20 per option. My return on invested capital is 6% already. Today, I also purchased Google December 310 Calls at $14.10 per option. At close, the bid price was down at $12.60 per option. I’m 11% into my initial investment already. With Google shares appreciating massive ammounts after hours on them beating earnings expectations, it'll be interesting to see where the option price opens tomorrow. Here are my recommendations team; we definetly can’t predict anything at this time. So, if this volatility is driving you stir crazy, play it cool and take a break. Sit tomorrow out. However, if you have the insight to dig a little deeper, like we did today, to find out what was driving the indexes down and how that would affect our thought process, you can play this market strategically. My thoughts… look long versus short. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Oil prices dropped. The Fed Beige Book said growth is happening despite the hurricanes. The earnings season has an overall positive theme. We satisfied the 'counting method to determine a market bottom'. Can we believe it? Look for follow through when opening long trades. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Wednesday, October 19th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. The counting method to determine a market bottom was satisfied today. It started out that the bearish sentiment that won out yesterday, for the most part, had the market opening lower. Early on, the market went even lower. But then, news started to roll on in. First it was the oil stock piles. With the demand dropping on the high retail prices of petroleum that consumer are seeing, coupled with the supply that’s being imported as well as that’s coming back online from our crippled infrastructure – we’ve got a surplus forming quickly. So oil prices are dropping. Second, it was the Fed Beige book notes that were released in the afternoon. Basically the jist of those notes was that the economy is strong and that the hurricanes had little lasting effect. Also, they addressed high energy prices and inflation and how it is flowing through to retail customers and how they would contain it with possibly more aggressive rate hikes. Third, the earnings season, for the most part so far, has been positive. The market bulls came out on the news. When I say we satisfied the counting method to determine a market bottom, I am saying that it is day five in our series and we got a price increase of over 1% on all the indexes we look at as well as heavy volume. This is very strong confirmation that the down trend is over. Like 9 or more out of 10 accuracy. I’ve upped the trading bias to neutral bullish on this news and we’ll be looking for our other indicators to come in line as the days roll on. My Techne January 55 Call closed flat at $3.50 per option. I’m 42% into my initial investment after 15 days. Here are my recommendations team; today was pretty monumental for the bulls. Pretty monumental indeed. But, we know from yesterday that the bears are out there. So, we need to be prepared for the market to catch up with today. I can see that tomorrow and Friday that we may have a stall. I expect that. Actually, Friday more than tomorrow. Tomorrow, we’ll still be so excited from today. Anyway, knowing the bears still exist, we need to tread lightly. At this point, we do need to exit our short trades and fast. But, even more we need to really look for follow though before going long. We have so many securities setting up, we need to pick the best of the best. Now is not the time to get caught up in the frenzy. Practice control and follow our rules for follow through. Only open a trade if the stock and the broad market are going your way. Look for a lack of news and a lack of insider trading. And, be cautious of earnings reporting. That could send you flying or dying. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
A surge in the Producer's Price Index caused inflation fears. The broad market declined on heavy volume despite promising earnings reporting. What about our 'counting method to determine a market bottom'? Be prepared to exit short trades at a moment's notice. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, Alright then, we had a down day and volume ticked up. What does that tell you team? It tells me that, the institutional traders only come out when its time to sell. What do they know that we don’t? We’ll it seems they are really looking long term at interest rates. Today the producer’s price index was released and it shot up. It shot up by a record amount. So, although we are well into this earning season, and for the most part, companies are reporting better than expected results, that inflation fear is really what is driving investors. Whenever investors are reminded of inflation, as the PPI did today, the sell bells ring. Today people who were sitting on the sidelines during the rally, came out and sold. Does that mean our rally is over? Well, the counting method still is going. We did not drop below our level so we still have three days in which if we get an uptick in price greater than 1% and that is on heavy volume, that we will indeed believe last Thursday’s trend reversal is valid. So, we still want to have our eyes peeled. But, for now, today, we got volume validation that indeed the bearish market is the right trading bias. My Techne January 55 Call closed down at $3.50 per option. I’m 42% into my initial investment after 14 days. Well team, today we saw validation that the bear is still there. There is still a possibility we can get an uptick in price on heavy volume that will satisfy our counting method to determine a market bottom. But, till now, after today’s heavy volume pull back, it will be more difficult. How does this affect us? We’ll, today our bearish trading bias was reinforced so looking for short entries would be prudent till we get a true signal of the bulls taking over. Now, because that could happen any time this week, it would actually be even smarter if we stay in our short entries, not open any new ones, and just play defensively. Be ready to take profits and run. But, I can’t stress, don’t jump to conclusions. This is where a tight stop loss or trailing stop loss alert comes in handy team. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Today was flat to slightly bullish. Volume was lighter than even last Friday. How will we know if this rally will peter out and turn bearish again, or will confirm? Look for the 'counting method to determine a market bottom' to be satisfied. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, We continued with the low volume rally today. In fact, we had lighter volume today than on Friday. So the real question is; how will we know if we hit a market bottom last Thursday? One of the methods most commonly used to determine if indeed we found our market bottom and the trend reversal we’ve seen is one we can put some confidence behind, is called the counting method to determine a market bottom. Basically, it’s this. We draw a reference line from the lowest day’s close. Every subsequent close should, at a minimum, be above that level. Even better is to have every subsequent close higher than the last. Now, between the fourth and the seventh trading day we are looking for a price increase of 1% or greater on heavy volume. If that follow thru happens, we are confident of the trend reversal. If it doesn’t within the seven days, then we need to start the method all over again. This method, team is right over nine times out of ten. So, tomorrow, Tuesday, October 18th, is our fourth day on all three indexes. If we get that validation from the counting method to determine a market bottom… that will be enough to swing our trading bias from bearish to bullish. So, read between the lines team… or listen to me say it bluntly. Be prepared to exit short positions should this happen. It’s premature to exit now. But, should we get a high volume gap up day… you’ll want to be out of short positions. My Techne January 55 Call closed up at $3.60 per option. I’m 40% into my initial investment after 13 days. Team, I’m going to be playing defensive again. Without an understanding of where the broad market is really at, it really hampers me in determining whether I should be looking for long or short entries. Of course, if you pick a stock that stands firmly on its two feet you may be able to weather going against the broad market. But, for me, the proposition of perhaps winding up the salmon going up stream is not too appealing. So, I’m playing the wait and see game. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
The small caps led a rally. Key levels of support were reestablished. Volume was significantly lower. The market closed lower for the week. Do you know how to confirm a reversal? Invest defensively until a decisive direction is established.. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Sunday, October 16th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from this past Friday and last week as well as prepare you for watching the market tomorrow and the upcoming week. We had a turn-around on Friday… perhaps. The broad market appreciated. The small caps dominated. But, what worries us is the light volume. Light volume is a clear and present sign that our institutional traders did not go along with the direction the market moved. The most likely reason our minority of individual traders brought the market higher probably had to do with the consumer price index factoring out energy being flat – perhaps leading investors to believe that the fed’s interest rate hikes are working. Other reasons may include retail sales minus automobiles being solid and oil prices dropping. But, here is how you have to think about it. A buy or a sell of a single share of stock is vote. The vote is tallied at the end of the day based on how many total votes came in that day. So, if 25 shares were sold and 75 shares were bought, then there was a higher ratio of shares bought out of the total shares moving – 75 out of 100 in our example – versus shares sold out of the total shares moving – which in our example was 25 out of 100. So in our example, the stock share price would most likely move up. Here comes the interesting point, by sitting on the sidelines, neither buying or selling, you not only don’t vote, you reduce the number of shares that moved for the day. So, when an institutional trader sits a session out, the confidence we can have in the day’s outcome is not so high. Let me explain. Take our example. Our example had a majority of investors buying out of the total number of investors there was that day. Now, say an institutional trader was to have sold that day. And say they sold 100 shares. Now, with one persons vote, we have 125 shares out of 200 that were sold and 75 out of 200 shares that were bought. The tables were turned on the votes from a single institutional trader. In this second case, the share prices would have dropped. This team, is exactly why we don’t believe the market’s actions when volume is light. And why we believe high volume days are more credible. My Techne January 55 Call closed flat at $3.20 per option. I’m 47% into my initial investment after 10 days. Team, what is key right now is to watch if these beginning signals we are seeing of a broad market reversal are going to pan out. We should know one way or another by early next week. And, earning season will be getting well on it way. I’m going to be taking a defensive approach for early this week. Just looking for signs to exit my long and or short positions. An offensive approach is better saved for a later date. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Bullish pressure finally overpowered bearish pressure in the small caps. Volume was light. What would we need to see to have confidence in a trend reversal at this point? We will keep our bearish broad market trading bias till we see volume support a bull rally. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Thursday, October 13th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Today was an interesting day with respect to technicals team. Let me explain why. I like to look at every day like a jury trial. Throughout the day, the two sides, in our case, the bears and the bulls argue their sides swaying the jury minute by minute, but at close, a verdict must be given. Today, in the broad market, we saw some heavy bearish pressures, but, you know what? The close was just about where the open was. In the case of the small caps on the Nasdaq, S&P600 and Russel 2000, the close was above. What that tells us is that when it came down to it, the bulls finally had had enough and they roared. Now, there is a clincher to this. That is the drop in volume. If we go back to our analogy, the number of jury members that showed up was less today then in the past days when the bears won on a landslide. As well, none of today’s jury members were influential… or in real speak, we didn’t see the foot print of any of our institutional trader friends. So, was today just a fluke? Here is what we would like to see on a trend reversal. The days leading up to the reversal having less and less volume and then the day of trend reversal and the subsequent days having heavier and heavier volume. In other words, we’d like to see an over turn in shares. What we saw today and in the past days was quite the opposite. So, what is the confidence that we’ve hit bottom? Not very high. But, today’s movement could be significant and raised enough flags that we’ll be looking for follow through tomorrow and into next week. For now, we’re going to stick with our bearish bias. My Techne January 55 Calls closed up today at $3.20 per option. I’m 47% into my initial investment on this one team after 9 days. Team, till we see anything solid, we are bearish. We are still looking to be in short positions. But, we want to watch, especially when we get hints like we did today, for the bulls to finally fight back against the bears. Always team, look for volume, before making a move. Volume will tell you whether its just a fluke or if there is something substantial going on. Tomorrow is a day of morning news. Wait till the news settles before making moves team. Don’t get caught in the frenzy. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Rebound buying early only to give way to high volume downward pressure and closes at intraday lows. Oil gained, but energy stocks dropped with the rest of the broad market. Do you know how to look at our templates upside down for short entries? Invest in Puts when you see a short entry materialize. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Wednesday, October 12th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. An interesting phenomena is happening team. Every morning price opens higher and for amateur hour, for the most part, rebound buying happens. Probably from everyday traders like you and I that thinks it can’t get any worse and that every stock is at a bargain right now. Then, interestingly enough, our institutional traders jump in, especially in purging their small cap positions, and leaving a wake of heavy volume behind them after yet another sell off, they drive prices to close at their intraday low. It’s pretty neat actually. From our perspective, our bearish trading bias has really become rather robust. Meaning picking a stock that can stand on its two feet is less and less necessary. The broad market is trending down and it is pulling everything with it. Even having the price of oil going back up, which should bolster energy stocks… well, it just isn’t happening because the downward force is so strong and far reaching. The good news for us is that we have the magical Put option. Team, we can make money when the market is going down. Don’t be afraid to use that tool in the toolbox. My Techne January 55 Call closed down today at $2.50 per option. I’m 58% into my initial investment on this one team after only 8 days. Team, scan through those buffered, reactive and Chaikin reports to find possible short entries. Follow the same recipe we use for long entries, only substitute Puts for calls and look at everything upside down. Watch Meritage homes – ticker MTH - tomorrow. And, always be ready for a technical bounce up when the bulls fight back, even if it is temporary, you need to be ready. Tomorrow is a day of news that could send the sensitive market all over the place. Expect short term volatility – as in over the period of the day. Expect long term downward movement – as in over the period of a week. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
So far, earnings announcements have been poor. Oil gains on demand forecasts. FOMC meeting cite considerable inflationary pressures. How do options traders capitalize on short entries? Don't be afraid of Puts. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Tuesday, October 11th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. The first earnings announcements have come in, and so far… not so good. Match that with oil prices going up on heavier demand forecasts and with the Fed Open Market Committee’s meeting minutes citing considerable inflation pressure and the need to continue to raise interest rates... and you had a recipe for another flat to down day. The volume foot print was there team. Both the NYSE and the NASDAQ exchanges had heavy trading going on, telling us that our institutional trader friends were out today. Large cap stocks for the most part closed flat. The small caps, however, fell. The NASDAQ actually closed below its 200 day moving average, the first time that has happened since last spring. This all reinforces our bearish trading bias team. Tomorrow I’ve got my eyes open for short entries. My Techne January 55 Call closed down today at $3.10 per option. I’m 48% into my initial investment on this one team after only 7 trading days. Team, this pull back will be profitable for us if we go short. Pay special close attention to signals to open short positions within our watch list. If you get a signal in the evening, like we did with Beazer Homes, and then the next day we get the follow through we look for, it’s time to buy some puts. Don’t be afraid of using puts as a tool. They are what allows us to make money in a depreciating market. Team, puts are our friends. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
It's third quarter earnings season. Oil, inflation and hurricanes have distracted investors from watching underlying companies . For most investors, will the earnings announcements be a surprise? Be prepared to react this season. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Monday, October 10th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Third quarter earnings season is upon us team, and your guess is as good as mine. What’s interesting is, with the price of oil and gas sky high, with the Fed being scrutinized over their next move with interest rates, and with the tragedies on the gulf coast in the wake of hurricane Katrina followed by Rita, we really haven’t been paying attention to how business is doing. We can only guess that business has been affected by oil prices. Or, can we even guess that? The key word in both of those sentences is guess. Team, use your earnings calendar to find out when our watch list stocks are up to bat. And, if you are brave enough, plays them as they come. For me, I’ll probably spend this season mostly watching from the sidelines. My Techne January 55 Call closed flat today at $3.30 per option. I’m 45% into my initial investment on this one team after 6 days. Team; tomorrow is a day of more earnings announcements and the Fed Open Market Comitte minutes from their last meeting. Just those meeting notes could turn a morning trend around in the other direction so my reaction is to stay out; to watch this one from the sidelines. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Employment reports came in better than expected. The indexes closed higher. But, volume was very light causing us to question the upward price movement. Where were our institutional traders? Be apprehensive if you don't see volume. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Sunday, October 9th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from last Friday and last week as well as prepare you for watching the market tomorrow and for the weeks to come.. We had very little volume on Friday. Employment reports came in better than expected, so with whatever volume we did see, it created a price movement in the positive bullish direction. But remember team, that bullish price movement didn’t come from our institutional traders, did it? Our institutional traders leave a big foot print. On Friday we can deduce that our institutional traders took the day off. So, here are the conclusions you can make. We are in a bearish trading bias…. We should be closing long entries and looking out for short entries. There is a good chance there will be some rebound buying maybe as early as next week. We want to see that institutional trader foot print – which is what again, team? That’s right, volume. If we see that, we want to look back at some of the charts that have established bullish trends and are triggering right now. An example is Alcon, ticker ACL. Team, remember this from my book and from the teleclass… we don’t do our technical templates for the sake of doing technical analysis. There are tons of places out there that do that, teach technical analysis for the sake of technical analysis. What we are doing team is using technical analysis to see the behavior of stocks on our watch list and to see behaviors of our watch lists as wholes to understand the broad market. We’re looking to understand where the big monies are flowing, what those institutional traders, those few people that control the most of the money being traded… we’re looking to understand how they are feeling and where they’re taking the market. By understanding these behaviors, the insights we gain will make us the best investors that have a leg up against everyone else. You can only get this type of analysis here folks. Amazingly powerful. It knocks my socks off every day what we have going for us that no other trading community does. My Techne January 55 Call closed down Friday at $3.30 per option. I’m 45% into my initial investment on this one team after only 3 trading days. Team; tomorrow is a day of no news. It’s Christopher Columbus day. Volume is the parameter to watch tomorrow. If you see it combined with price movement, by all means act. If you don’t see volume, then beware. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Retail sales increased in September. Oil dropped to a new low. But, inflation worries triumphed. Small caps dropped pulling the broad market lower. What will tomorrow's employment report bring? If you can't be an active trader tomorrow, sit the day out. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Thursday, October 6th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Although retail sales picked up in September, and oil dropped to another low – this time taking natural gas with it, we still had fear of inflation bringing the market to close lower with small caps leading the pack. What we saw today was a little different than yesterday and Tuesday’s distribution days. Yes today we had heavy volume, but the days close tended to close right smack dab in the middle of the day’s intra day high and intraday low. That means rather than the bears winning by a landfall, there was just about equal pressure from the bears and the bulls. That usually signals to us that a bottom has been hit. Of course, today was very weak on news. Tomorrow we get our employment report for the month and that could be just enough news to send the market in one direction or the other. We’ll just have to watch and react accordingly to the behavior of tomorrow’s market. Team, remember this from my book and from the teleclass… we don’t do our technical templates for the sake of doing technical analysis. There are tons of places out there that do that, teach technical analysis for the sake of technical analysis. What we are doing team is using technical analysis to see the behavior of stocks on our watch list and to see behaviors of our watch lists as wholes to understand the broad market. We’re looking to understand where the big monies are flowing, what those institutional traders, those few people that control the most of the money being traded… we’re looking to understand how they are feeling and where they’re taking the market. By understanding these behaviors, the insights we gain will make us the best investors that have a leg up against everyone else. You can only get this type of analysis here folks. Amazingly powerful. It knocks my socks off every day when I think about what we have going for us that no other trading community does. My Techne January 55 Call closed down today at $3.50 per option. I’m 42% into my initial investment on this one team after only 2 trading days. Team; tomorrow is a day of heavier news than today. The market movement will be unpredictable. It’s a good day, if you can’t watch the market real time, to sit out on the side lines because anything can happen. I personally am trying to liquidate my portfolio again capturing as much profit that is available in the here and now. The market is giving mixed signals which makes me feel uncomfortable entering short positions at this time and being in long positions at the same time. So, I rather take what I can and then wait patiently. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Back-to-back distribution days force us to lower our trading bias to Bearish. The ISM services index dropped a record amount. Indexes dropped below their 200 day average. Is a technical rebound possible? Never anticipate or speculate. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Wednesday, October 5th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. A back to back distribution day; that’s what today was team. Perhaps spurred by the Institute for Supply Management’s service index dropping a record amount, perhaps spurred by oil dropping – and all energy related stocks dropping - on word that demand has been curbed drastically, or perhaps just on the long term negative buildups of events that’s been backing up in the cue without being faced… till today that is. Suffice it to say, all but our NASDAQ index, dropped through major levels of support. Many 200 day simple moving averages were breached. All Williams %R indicator shot to extreme oversold. I had to drop our overall trading bias to Bear from Neutral. Now this is the time that separates the real investors from those that can’t separate themselves from their emotions. It’s during these times of bias changes, when exiting long trades, no matter what – I’ll be it, take some time and exit elegantly, grab as much profit and minimize as much loss as you can… but when the bias goes bear, being long is wrong. Instead you want to be short. Follow the trend. I’ve seen so many investors revert to their emotions saying to themselves… this downtrend must be temporary. That’s speculative, wouldn’t you say team? More times out of not, those investors are wrong and they loose their shirts. I’ve done it a number of times myself. Don’t fall prey to that type of thinking. Follow what you see and know not what you feel and think. If next week, our bias turns bullish again, no worries, exit your short positions and go long. And, by the way, a technical rebound is possible and highly probable. Learn to roll with it. But never anticipate or speculate. The point is, if you are long right now, look for your exits. And, at this point, look for short entries. I sold my Autodesk November 45 Calls, after receiving a trailing stop loss alert, at $3.00 per option. My return on invested capital is 58% after being in the trade for 8 days. I sold my Joy Global November 50 Calls, after receiving a trailing stop loss alert, at $3.20 per option. My return on invested capital is 60% after 8 days. Both very respectable gains team. My Techne January 55 Call closed down today at $4.10 per option. I’m 32% into my initial investment on this one team. Team; tomorrow is a day of light news which means probably little market movement. So, tomorrow is a day for you to clean up your portfolio. Take your profits where you have them and make the hard decision to cuts some losses. If the market rebounds tomorrow or Friday, so be it. You can get back into you long positions another day. But, the worse thing ever is staying in a clear looser. Again, act on the evidence you see and know not what you feel and think. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
For most of the day the bull continued its climb up the stairs. The bear jumped out the window in the last hours of trading. Hawkish comments from a Fed dove triggered the reversal. Will this be temporary? Be diligent with your stop loss orders on long entries. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Tuesday, October 4th with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Alright team, who watched the market today? Till the afternoon the day was fairly bullish following the same path as the previous days… we were on a slow bullish rally, regaining territory we had lost in the past. Then, that saying came true for us again. The bull indeed was coming up the stairs when the bear… that bear jumped right out the window. What was the subject that caused the reversal? Why, it was interest rates of course. One of the members of the Federal Open Market Committee that votes on interest rates, a gentleman that typically is an advocate of refraining from raising rates, made a comment today that not only is the fed going to continue to raise rates, but at this point inflation is not being well contained by only quarter point hikes, or so was the jist of what he said. And, of course the market reacted negatively to that. Wouldn’t you? From a technicals perspective we lost all sorts of ground with prices of the indexes closing below levels of support and below key moving average milestones. Looking as well at our TradingTrainer.com technicals reports, you’ll see the indexes have again returned, for the most part, back to the bearish side of the house. Because this was stimulated in such a short amount of time, literally in less than three hours, and it was off a person's comments, it wouldn’t be impossible for this to reverse tomorrow with bargain hunters buying early and maybe combined with a shot of good news to counter the bad, so we’ll keep out trading bias at neutral for the time being and just see what happens tomorrow. The bid price of my Autodesk November 45 Calls closed down at $3.40 per option. My return on invested capital is 79% after 7 days. The bid price of my Joy Global November 50 Calls closed up at $3.30 per option. My return on invested capital is 65% after 7 days. And, I opened a long position on Techne before the market collapsed. I bought the Techne January 55 calls at $6.00 per option today. The bid price closed down at $4.90 per option. Right out of the gate, I’ve dipped 18% into my initial investment. Team; as I have been hinting throughout this web log, typically when news of this sort triggers this type of market knee jerk reaction, it has been temporary. So, I’m leaving the trading bias where it is till we see either a reversal or follow thru on today’s movement. What a move like this does do, however, is put me on the defensive. For tomorrow, I will have my trailing stop loss alerts in place on my AutoDesk and Joy Global call options as well as my static stop loss alert on Techne. And, instead of looking at charts to go long on, I’ll instead be just watching the broad market from the sidelines ready to react on positions in my own portfolio. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Today there was conflicting news on how the economy is doing. Growth is up. But, so are prices paid. The small caps led. Will the large caps catch up? Pass on entries that aren't compelling. Click here to get today's free options advice; have A.J. explain option trading to you in everyday language.Hey trading team, This is A.J. on Monday, October 3rd with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from today as well as prepare you for watching the market tomorrow. Today was down, but it was up. What does that mean? Well, the ISM manufacturing index jumped a record amount not seen since 1991. That excites people who like to hear about growth. Now the bad news, at the same time, the prices paid index has had the biggest two month rise since 1972. That scares people worried about inflation. Construction spending came in a little less than expected. Semiconductor sales came in a little higher than expected. The auto makers saw their sales drop incredibly. And the long bond interest rates are up to a 7 week high. From a technical’s perspective, we will start with the broad market… small caps led the way on a bullish rally while the large caps meandered behind with a flat to slightly down day – probably in part due to the automakers. Volume on the NASDAQ exchange ticked up a notch while the NYSE stayed at the same level of volume action that happened last Friday. Now, looking at our watch list, for the most part our watch list had an up day. Our reactive, buffered and Chaikin templates are definitely tending bullish. The big thing we’d like to see right now with respect to the index charts we use to determine the broad market direction… what we’d like to see is the 7 day averages cross up above the 30 day averages. That would be the next milestone. The bid price of my Autodesk November 45 Calls closed up at $3.50 per option. My return on invested capital is 84% after 6 days. The bid price of my Joy Global November 50 Calls closed up at $3.20 per option. My return on invested capital is 60% after 6 days. Team; the question for the day is, will the large caps catch up with the small caps. Right now we are relying on the stock and its charts to determine if it has what it takes to make it on its own. With the broad market in a bullish funk, for lack of a better word, there is no extra push to our stocks so they for sure better make it on their own, yes? And, we need to be more realistic, without that underlying pump, we can’t expect always to double our money… it’s possible but our target could be closer to 50%. In fact, tomorrow, I’ll have trailing stop loss orders set on my Autodesk and Joy Global options. Trailing stops are what I use when a stock has passed my profit target in gains. Tomorrow, I’ll also be watching Garmin - ticker GRMN - and Techne - ticker TECH - for possible entry points. But, I am fully aware that right now we have to play it day by day. So, if an entry is not compelling, I am prepared to pass. Do you agree team? Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear the blog as an audio from A.J. himself!
Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now. ~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~
Will The Market Break Out?
Neutral trading bias still. Look at resetting
profit targets. Will the bull climb the stairs
some more? Perhaps use stop alerts, not stop
orders. Get the latest at TradingTrainer.com.Hey trading team, This is A.J. on Sunday, October 2nd with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from this past Friday and last week as well as prepare you for watching the market tomorrow. Last week had the sentiment of a negative week. Yet, the trading indexes that we use to gauge the broad market all gained over 1% and in some cases more than 2%. It is hard for me to believe the resilience of this market. Suffice it to say, the 30 day moving averages of the DOW, NASDAQ and the S&P 500 have gone flat to positive. For sure the market is in a neutral trading bias. Let’s review what that means team. It means we need to trade stock charts on their own merit because there is no underlying push coming from the broad market. And, as a result of the aforementioned point, we need to set a more realistic profit target on our trades. Rather than expecting to double our money on every trade, perhaps a better target is to make 50% return on invested capital. The bid price of my Autodesk November 45 Calls closed up at $3.30 per option. My return on invested capital is 74% after 3 days. The bid price of my Joy Global November 50 Calls closed up at $2.95 per option. My return on invested capital is 48% after 2 days. Team; the big question on my mind is whether the broad market will continue on last week's slow paced rally. Will that bull continue to come up the stairs, if you will. In the meantime, I’ve surpassed my 50% target on Autodesk so I am going to set a trailing stop loss alert starting 20% below the opening price. As for Joy Global, I’m bumping up my static stop loss alert to 25% to guarantee that return. All my stop loss alerts are calibrated on the bid price. And they are alerts, not orders. Finally, tomorrow, I am going to scan our whole watch list for consolidation patterns that are set to break out. Okay, team. I'm done. Till tomorrow, happy market watching, trading and money making. Trading Trainer is here helping you create your dream lifestyle. Best regards always, A.J. Click on the below play button to hear
the blog as an audio from A.J. himself!About the Author A.J. Brown is a full time options trader, author, speaker and consultant. Watch him review stock charts on video each day, listen to his audio newsletter where he leads you by the hand through the end-to-end process of successful options traders and get tips and tested strategies proven to boost your return on your invested capital by massive amounts in his membership site at TradingTrainer.com today. * You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. 
|
|
All Materials Copyright © 2005 www.TradingTrainer.com |
|
