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. <~