3rd Day Of Broad Market Declines

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. <~