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.

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