Big Resistance
Friday’s free trade in PSEC is working out nicely. Those that took the trade should have a nice little profit as it bounces off of support. Today I’m looking a counter-trend trade running into Big Resistance.
T is on a very nice bull run but has run headlong into a big price resistance level. I am not looking for a big selloff, I’m only looking for T to stay below 39 for a short-term pullback in reaction to the resistance. Consider buying the 22 DEC 39 Puts to take advantage of a small swing lower.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Yesterday we saw some selling on worries the Tax Reform bill would not get finished up. This morning sentiment quickly changes as news of a vote and passage could happen as early as today. I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle. Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early. Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily. Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher. I think the road ahead could be a bit bumpier than we have seen this week. Plan carefully and remember to take profits.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
Bottoming Pattern
Yesterday Lottery Ticket was a dismal failure as FIT made a full reversal and then gaped down. How rude. Today I’m looking at a nice bottoming pattern with an nice entry signal with upside potential.
PSEC has just recently broken a nasty downtrend and is holding support. The nice candle today suggest buyers are trying to move it higher. As an added bonus the chart is showing a possible Inverted Head and shoulders pattern and a Rounded Bottom Breakout. If your interested take a look at the 19 JAN 6 Calls. A close below the last swing low would be a good reason to exit the trade.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Yesterday we saw some selling on worries the Tax Reform bill would not get finished up. This morning sentiment quickly changes as news of a vote and passage could happen as early as today. I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle. Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early. Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily. Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher. I think the road ahead could be a bit bumpier than we have seen this week. Plan carefully and remember to take profits.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
Lottery Ticket Trade
Before I tell you about today’s Free Trade Idea I want to let everyone know this trade is not for everyone. Please keep in mind that all Free Trade Ideas may or May NOT be traded by me and should always be evaluated by you to determine suitability. Today’s idea is a Lottery Ticket Trade.
I used the term lottery ticket because this trade is trying to make big profit on a small move in the the stock FIT. FIT is a volatile and very newsy stock. Today we see nice price pattern with stock trying to recover after a long bottoming pattern. Consider the 22 DEC 7 strike Calls trading for less than $0.25. Remember your maximum loss is what you paid for the trade. A $0.40 gain in the stock could produce a better than 50% gain.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
I have to admit that I was somewhat surprised that yesterdays FOMC announcement turned out to be such a non-event. The market just yawned and saw nothing to react too. Today is another big news day with some big after the bell earnings reports tossed in for good measure. The Bulls are firmly in control buy at the end of the day yesterday price action suggested a little weariness and maybe a rest in the rally is possible. With all the news the market will have a lot to chew on and potentially react so stay on your toes. In an all bull market it’s very easy to become complacent because you can buy almost anything at anytime and the rising tide makes you money. Guard yourself against complacency by staying focused on the only thing that really matters, Price! The clues will be there if you watch and listen to the market.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
Stick with the plan
Yesterday’s trade suffered a pullback at the open this morning breaking our quick profits winning streak. However, with FOMC decision today I’m am going to stick with the plan thinking it could still pop depending on the news. As I said yesterday if TBT breaks support close the position.
Today I’m looking at trade on CMG. the stock gaped up this morning and is currently pulling back to price support. If support holds consider a weekly contract bull put credit spread. Take a look at the 22 DEC 17 series, selling the 305 Puts and buying the 300 Puts. If CMG falls below $311.50 closing the trade to avoid the risk should be considered.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Waiting for the Fed. After this FOMC meeting, we will likely be bidding farewell to Chairman Yellen. As her final act, she will likely leave us with an interest rate increase. That’s not a surprise the FOMC has been projecting that possibility for months now. However, there is speculation she could leave us with a nasty surprise on Wednesday in response to the Tax Reform bill. Many are thinking the FOMC could project additional interest rate increases next year as a result. Currently, they are projecting just three. Any additions could make for an interesting market reaction at tomorrow. Plan accordingly. Also, keep in mind that as the market waits for the official FOMC statement price action normally becomes light and choppy. As we reach out for new all-time highs, it would be wise to keep that in mind as you plan the path forward.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
Friday’s free trade in PSEC is working out nicely. Those that took the trade should have a nice little profit as it bounces off of support. Today I’m looking a counter-trend trade running into Big Resistance.
