FOMC Trade
Today I have an FOMC Trade in mind but before that, the short trade on MU worked out very well. If you held it through to this morning you should have pocketed better than 40% gain. Congrats to those who took the trade.
With he FOMC meeting beginning today and the expected rise interest rates I want to pick up some TBT. Bonds are normally negatively affected when rates rise. With possibility that the Fed may project more rate hikes next year due to the Tax Reform bill we could get a bigger reaction. To take advantage of that consider the TBT JAN 33 Calls. A close below price support would be a good time to stop out.
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.
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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.
Weekly Options
The Weekly Options idea in MU on Friday has paid off very well with better than 50% gains today. Congrats to those that took some risk on that position.
Today I have a very similar idea on AABA. the stock has rallied very strongly off the low but now seems to have bumped into resistance. Consider the 15 DEC AABA 44.5 Puts for a quick short. A close above today’s high would be a good reason to stop out of the trade. Plan to take profits quickly as well is the stock moves in our favor.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
With the Dow Futures pointing to a gap up open and the VIX once again dropping below a 10-handle all is well in the market. Or is it? Let’s keep remember; it was just a week ago that many were calling a blow-off top! The truth is no one knows the future and thinking we can predict it is nothing more than ego trampling common sense. However, if set aside our bias focus on price and listen closely, the market will whisper clues and allow us to take calculated risks. Otherwise know as trade planning! Not just some of the time, All the Time. each and every trade! So the questions is, are you listening or are you still trying to predict? With a gap up to new market highs, the market is whispering to me to avoid chasing this morning and watchful of possible whipsaws. Also with the FOMC on Wednesday, choppy boring price action could lie ahead.
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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.
A Quick Short
Yesterday’s Free Trade, UAL, Moved up nicely yesterday and gaped for a one day return of nearly 30%. Congrats to those who took advantage of the idea. Now let’s look to the future for a quick short idea.
MU has made a nice recovery but seems to have run headlong into price resistance. Take a look at the MU 15 DEC 46 strike Put weekly contacts. This trade will gives us a nice negative delta position with plenty of open interest. Theta is the enemy here so if MU does not make a move lower by Wednesday 13th consider closing the position. If MU closes above resistance you may also want to close the position.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
During the evening the Congress passed a continuing resolution that prevents a government shut down. However, their action only extended the battle for 2-weeks. Now the question is will the hoped-for Santa Claus Rally be held, hostage by Congress? Santa held hostage, shame on you Congress! My feeble attempt at humor is simply point out that the market will likely remain sensitive to the spin out of Washington D.C. Of course, the bulls could find their inspiration in the Employment situation number to move higher, but the governmental pressure will be ever-present. Also, weighing on the mind of the market is the upcoming FOMC meeting. As for me, I will continue to focus on price action and continue to trade with the trend. However, I may trade smaller than normal positions due to the uncertainty of the new cycle.
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.
RBB Pattern
With the news that oil supplies are the price of oil has started moving lower. One very big beneficiary of declining oil price is the airlines. UAL looks to have completed a bottom pattern and breaking above resistance.
The light volume pullback has now set up one of my favorite trading patterns, the RBB Pattern. (Rounded Bottom Breakout) We may be a little early with this idea but the pattern is now providing a very low risk entry. To take advantage of this idea consider the JAN 57.5 Calls for a quick directional trade. A move up to just $65 could produce more than a 45% return. A close below support would be a reason to stop out of the position.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
With the last 3-days of selling, traders are starting to wonder, Where is Santa? Gloom and doomers have been predicting the demise of the 2017 bull run all year. Now having strung together the first 3-day selling streak since August they are out in force predicting the market top has happened. Could they be right? Of course, even a broken watch is right twice a day. Before diving headlong into a pit of despair take a minute to examine the charts. The DIA and the SPY are still trending up! The QQQ’s are suggesting caution, and the IWM is holding a significant support. Also, take notice that there has been no panic selling and the VIX is not registering fear. Historically the so-called Santa Rally appears 7 to 10 days after the beginning of December. Stay focused on price it will provide us the answers.
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.
Possible Support
GRPN has been in a nice trend and looks to have a possible support. On a low cost stock like GRPN I will normally just by the stock but if your looking for an option trade check out the JAN 2018 5 Calls. The Jan series has a lot of open interest and the 5 strike has more then 21,000 of open interest.
Consider a stop around $5.45. The options are inexpensive but be careful not to over trade sizing this trade to large. Keep in mind GRPN is a rather volatile stock.
P.S. Yesterday’s trade idea opened with a one day gain of more than 8%.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
With the last 3-days of selling, traders are starting to wonder, Where is Santa? Gloom and doomers have been predicting the demise of the 2017 bull run all year. Now having strung together the first 3-day selling streak since August they are out in force predicting the market top has happened. Could they be right? Of course, even a broken watch is right twice a day. Before diving headlong into a pit of despair take a minute to examine the charts. The DIA and the SPY are still trending up! The QQQ’s are suggesting caution, and the IWM is holding a significant support. Also, take notice that there has been no panic selling and the VIX is not registering fear. Historically the so-called Santa Rally appears 7 to 10 days after the beginning of December. Stay focused on price it will provide us the answers.
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.
Today I have an FOMC Trade in mind but before that, the short trade on MU worked out very well. If you held it through to this morning you should have pocketed better than 40% gain. Congrats to those who took the trade.
