Expiring Options Close The Week On An Up Note

There was no economic news on Friday. Thursday had heavy gains on heavy volume. Futures and stock options expired on Friday with a ton of call options being exchanged for the underlying stock. So, is now the time to go long? Almost, let's get a feel for momentum of the broad market on Monday. 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, November 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 this past Friday and last week as well as prepare you for watching the market tomorrow and for the week to come.

This past Friday we ended a bullish week on a high. Not only did price close higher but volume was high as well.

So what happened? I warned of price stagnation or even profit taking. What was I off about?

Well, my thoughts were based on the lack of economic news combined with the large heavy volume gains of Thursday. That usually means the market is due for some gain digestion.

So what happened Friday? Friday, we had stock and futures options expiring. Obviously, a lot of call options were cashed in for underlying stock. All on one day, a bunch of stock was bought. It is almost as if an institutional trader made a move.

What does Friday’s reaction to options expiring say about investor sentiment? Well, it says investor sentiment is bullish. That’s powerful team. To follow a heavy up day with validation that investor’s sentiment is bullish. That’s powerful team.

My Techne January 55 Calls closed up with a bid price of $2.20 per option. I’m drawn down by 63% into my initial investment after 45 days. My Southwestern Energy December 35 Calls closed down with a bid price of $2.10 per option. I’m drawn down by 47% into my initial investment after 16 days. My Phelps Dodge January 125 calls closed up with a bid price of $11.70 per option. My return on invested capital is 46% after 2 days.

Here are my recommendations team… Monday is a new week. We made some major bullish gains this past week on heavy volume and we haven’t taken the time to digest these gains. It may indeed be that digestion is not necessary. But, I personally am gun shy. Indeed, we are moving into a holiday week. So, there is a high likelihood that due to vacation and do to a probably slow down, profit taking could bring prices down again or leave them flat.

Monday will be a good indicator. So I will be watch Monday’s price movement and letting momentum guide me through Tuesday and Wednesday.

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. <~

Rally To Next Resitance Levels

Another day of lower oil prices and a validation that there is foreign interest in investments in U.S. debt sent the market higher. Volume was heavy on both exchanges. Can we open long positions now? Wait for further confirmation of upward trends. 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, November 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.

Despite the growing trade deficit, the broad market rallied today above levels of resistance. And volume was heavy on both the NYSE and NASDAQ exchange.

They say it was because oil was down again. Price shot up to close at the next levels of resistance for the Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500.

Tomorrow, there is no economic news scheduled to be released… which means one of three things is going to happen. Either the market is going to continue today's rally. Or, the market is going to realize that it got caught up in a buying frenzy today and tomorrow, through profit taking it will bounce down off resistance. Or, the volume will decrease drastically and price will be flat.

All in all, it means we should wait and see. I know it’s hard team. The whole week has been a wait and see week. But, honestly, would any of you been able to navigate through this week? I know I wouldn’t have. I would have lost my shirt.

My Techne January 55 Calls closed down with a bid price of $1.95 per option. I’m drawn down by 68% into my initial investment after 37 days. My Southwestern Energy December 70 Calls closed down with a bid price of $2.80 per option. I’m drawn down by 65% into my initial investment after 8 days.

Here is my recommendations team… there is no news tomorrow. The market could do anything. It could give up today’s gains. It could continue today’s rally. Or it coulde be flat. Watching price and volume is key.

Till the market has a consistent rally, I can't be confident. I’m going to hold off on opening new positions. Holding off and sitting on the sidelines is not easy. Sometimes I feel my money burning a hole in my pocket. But, exercising self control is worth it in the end in the reduction of stress and the increase in profits… do you see what I’m talking about 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. <~

Bombs In Jordan Reverse Rally

Bombs in Jordan reverse a rally attempt. Pull back in oil prices relieving constraints on growth. How do we interpret today? We don't. We wait for a day that isn't interrupted. 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, November 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 today as well as prepare you for watching the market tomorrow.

Team, they’re saying there was a rally today and if it weren’t for the bombings in Jordan it would have really been an up day. What do you think?

We see that volume went up in the Dow chart. And, we see that volume was flat in the NASDAQ chart. The question is… was it individual investors or was it institutional traders? Team, who reacts more to current events news? Yes, individuals.

So, while we are hear trying to get a barometer reading on the broad market, something like this happens and again clouds the message.

Is the pull back in crude oil price contributing to the bulls? We just won’t know from today. We need to keep watching. The bias is neutral another day.

My Techne January 55 Calls closed up with a bid price of $2.15 per option. I’m drawn down by 64% into my initial investment after 36 days. My Southwestern Energy December 70 Calls closed down with a bid price of $4.80 per option. I’m drawn down by 39% into my initial investment after 7 days.

Here is my recommendations team. Today was a dud with the current events distracting the market. I therefore am still in a holding pattern till some sort of direction is taken. I’m not opening any new positions.

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. <~

Reversal Or Testing Rally?

Indexes lost today. Volume was light. Price volume characteristics are similar to 'getting over hump' behavior. Home builders admitted today that they are experiencing a real estate slow down. Are we experiencing a test of the current rally, or, are we experiencing a reversal? Remain in a holding pattern till the broad market reacts. 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, November 8th 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, yesterday we questioned… Are we at the end of this rally? Today our question is… Are we just testing or are we going to go bear again?

In all of our index charts we approached resistance… those levels of resistance that we just haven’t been able to blow through yet, and, as is characteristic, we had a drop in volume and we rebounded off of resistance.

Now, what do I mean by testing. Quite often a stock will back away from a rally for a day, or two or three, to test and then proceed right on through. Is that possible in our case? Of course it is. How can we tell whether to stay in or not right now? We can’t.

It would be a treat if we could see into the future, right team? If we could get tomorrow’s paper, today. It would be the magic bullet. It would be the secret that Wall Street would pay millions for. We can’t. We can only trade based on what we see. We see a pull back. Our bias is now neutral. If it is a test and we start uptrending again, we’ll adjust the bias.

Is that a deal team?

My Techne January 55 Calls closed down with a bid price of $2.00 per option. I’m drawn down by 67% into my initial investment after 35 days. My Southwestern Energy December 70 Calls closed up with a bid price of $5.60 per option. I’m drawn down by 29% into my initial investment after 6 days. I followed my own recommendation from yesterday on my Google January 350 Calls and sold today for $52.60 per option. My return on invested capital was 98% after 13 days.

Here is my recommendations team. I’m in a holding pattern team till the indexes test the rally or build momentum on their current decline. I’m simply going to focus on my own portfolio at this time.

Being flexible and being ready for anything is the name of the game this 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. <~

Resistance, Beat Or Retreat?

Indexes gained price. Volume is still light as key levels of resistance are being challenged. There is little economic news this week to stir institutional traders. What is the best strategy? Remain in a holding pattern till the broad market reacts. 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, November 7th 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.

What do you think team? Are we at the end of our latest rally?

You have to admit that we are on our way to levels of resistance that we have tested time in and time out before. And, as we approach those levels of resistance, our volume is decreasing showing less conviction.

Remember that human nature has people saying, “Wow, we haven’t been able to break up above level xyz before, so if I was smart I’d sell then before it drops again. I better place a limit sell order at level xyz.”

Now, team, what happens when we hit level xyz? All those limit sell orders fill, investors take their profits and shares are released in the market. There is concentrated selling with only scattered buying. Concentrated selling with scattered buying always goes along with price dropping. As price drops what do you think more investors will do out of fear? Sell to realize profits. You get a catch 22.

The only way to break through resistance? Have more concentrated buying then selling. Now, who can contradict the human nature scenario we just depicted? Not, you or I. If you said, institutional traders, you are correct. Will they do it this time around? Well… we’ll need to just wait and see. It doesn’t help that there is sparse economic news this week. Positive economic news is a factor in institutional movements if you haven’t noticed.

My Techne January 55 Calls closed flat with a bid price of $2.25 per option. I’m drawn down by 63% into my initial investment after 34 days. My Google January 350 Calls closed up with a bid price of $54.30 per option. My return on invested capital is 105% after 12 days. And, my Southwestern Energy December 70 Calls closed down with a bid price of $5.20 per option. I’m drawn down by 34% into my initial investment after 5 days. I was stopped out of my Apple January 55 Calls. I sold them today at $8.60 per option. My return on invested capital was 76% after 18 days.

Here is my recommendations team. I’m still in a holding pattern team till the indexes challenge and either beat or retreat from resistance. I’m simply going to focus on my own portfolio at this time.

Being flexible and being ready for anything is the name of the game this 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. <~

Friday Comes In Flat And Light

Flat day on light volume. Record gains for the week. Stretch goals for the week were maintained. Is the rally over? Wait for the end of Monday to see what investors think after returning from the weekend. 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, November 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 this past Friday and last week as well as prepare you for watching the market tomorrow and for the upcoming week.

The week ended with some breath catching by the broad market. That is perfectly healthy for a rally. We saw price go flat on very light volume.

What’s really exciting with respect to the broad market is our weekly charts. You know team, you can apply the counting method to determine a market bottom to more than just daily charts. Take a good hard look at the weekly charts. Yes indeed, we have satisfied the counting method to determine a market bottom with respect to the weekly chart. That’s big.

Now, many can argue that the downtrend wasn’t long enough to make satisfying the couting method significant, but take into account that we also have reached our stretch goals for the week and I would say we are on a strong bullish footing.

Let’s see if we can’t maintain this momentum in the upcoming week. Still trading cautiously.

My Techne January 55 Calls closed down with a bid price of $2.25 per option. I’m drawn down by 63% into my initial investment after 31 days. My Apple January 55 Calls closed down with a bid price of $8.60 per option. My return on invested capital is 76% after 15 days. My Google January 350 Calls closed up with a bid price of $51.10 per option. My return on invested capital is 93% after 9 days. And, my Southwestern Energy December 70 Calls closed down with a bid price of $5.50 per option. I’m drawn down by 30% into my initial investment after 2 days.

Here is my recommendations team. Watch on Monday for the market to maintain those stretch goals. You want to get a good feeling how the investors have returned from their weekend.

For me that is going to take all Monday to figure 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!

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. <~

No News; Large Gains On Heavy Volume

Oil and gas prices continued to fall as demand stays low and supply is increasing with more refineries coming back online. The broad market rallied on heavy volume led by the small caps. Is it time to trade long? Trade cautiously through the end of the week. 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, November 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 today as well as prepare you for watching the market tomorrow.

There was no real news today, besides the oil and gas stock piles increasing. But yet the market rallied on heavy volume. Extremely heavy volume. The institutional traders were buying. Chalk one up for the bulls.

The test we placed on the broad market was that the indexes would maintain key levels of support. For the Dow that was 10,400. For the Nasdaq that was 2,100 and for the S&P500 that was 1, 200. At this point we’re even thinking about ‘icing on the cake’ which would be, what would happen if this week the Dow breached 10,500, the Nasdaq 2, 160 and the S&P 500 1,220?

We’ve got some key news coming up tomorrow and Friday that could either enhance or make fuzzy this bullish picture. Tomorrow with data being released about Factory orders and the ISM coming out with their service index, and then with the employment report coming out on Friday… we’ll just have to play it cautiously team.

My Techne January 55 Calls closed up with a bid price of $2.45 per option. I’m drawn down by 59% into my initial investment after 29 days. My Apple January 55 Calls closed up with a bid price of $7.80 per option. My return on invested capital is 59% after 13 days. My Google January 350 Calls closed up with a bid price of $45.00 per option. My return on invested capital is 70% after 7 days. And, today team I bought Southwestern Energy December 70 Calls. I bought them at the end of the day at an ask price of 7.90 per option. When the day closed, the bid price was at $7.90 per option. My return on invested capital is 0% after just few hours.

Here is my recommendations team. Look for the markets reaction to tomorrow mornings news. Also, look for the indexes to maintain levels above those price milestones. In fact, look for the indexes to hit those stretch goals.

Trade cautiously team because any bad news will cause a mass amount of profit taking. Have your stop loss orders in place. Let’s take it day by day and week by week at this point and take nothing for granted.

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. <~

Stalled Market On Mixed Volume

The Fed raised rates another quarter point to 4%. Verbiage accompanying the rate hike was nothing new. The market stalled. Volume was mixed. What's the broad market trading bias? Watch if the indexes maintain above key levels of support. 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, November 1st 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 fed raised rates today and will continue raising rates at a measured pace. So, there was no new verbiage. The market was stalled all day waiting for that, and then, for the most part it stalled the rest of the day. Volume was mixed not telling us anything.

Team, our big test of the week is, can the indexes hold above those key levels. For the DOW, we’re talking about 10,400. For the NASDAQ, we’re talking about 2,100. For the S&P we’re talking about 1,200. Till we see that, we will continue to trade the Neutral / Bullish trading bias emphasizing more the Neutral and less the Bullish.

My Techne January 55 Calls closed down with a bid price of $2.25 per option. I’m drawn down by 63% into my initial investment after 28 days. My Apple January 55 Calls closed flat with a bid price of $6.00 per option. My return on invested capital is 22% after 12 days. My Google January 350 Calls closed up with a bid price of $43.50 per option. My return on invested capital is 64% after 6 days.

Here is my recommendations team. Look for the indexes to maintain levels above those price milestones. Tread lightly till that level of support is tested and holds strong. Be prepared to take profits in your own portfolio should those levels be breached.

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. <~