Good Morning friends!

I will spare details but need to let everyone know that I will not be able to do a video today or open RWO.  The good news is after a really rough night I think I’ve finally started to turn the corner.  I simply need to rest toady and I believe I will be back on my feet Friday.

The market witnessed a good deal of volatility yesterday afternoon in reaction to the Trump press conference but managed to close the day with bulls in control.  the bullish did not transfer around the world with Asian and Euro markets all selling off.  As a consequence, the futures are suggesting a lower open.  A little selling in the morning doesn’t bother me because we are still in consolidation zone but coupling that to the intra-day volatility change and caution lights begin to light up in my head.  It may be time reduce holdings a become extra watchful for clues that the bears may be gaining an edge.

BMY really let us down yesterday and I think it would be best to close the position altogether.  We will still maintain a small profit on the overall trade due to the profits on the short strike but depending on your commission it may be a wash.

MSFT is looking good so as of now I would continue to hold this position.

Today there will be a flurry of news with Fed speakers and congressional hearings on some of the Trump appointees.  Congress has the potential for soap-opera style drama during such events which can, of course, create emotional market responses.  Also keep in mind that several of the big banks will begin reporting Friday morning.  Obviously, banks have enjoyed sharp rallies after the Trump election.  Most are suggesting we will see substantial growth in bank earnings last quarter but the question on everyone’s mind is will there enough improvement to justify the current prices.

Anything is possible so it’s very important to simply follow the charts, avoiding prediction and personal biases.  I know there are many thinking the market is way overbought and that may be true but all we will need is good earnings reports to push the markets even higher.  All that said, be a little cautious today, protect your positions, take profits and trade based on the price action of the chart.

Again, there is no video attached today and the RWO trading will be closed again today.  Very sorry for the inconvenience.  I promise I make it up to you!

Trade Wisely,

Doug

Top of the morning friends.  It’s hard to believe it’s already humpday.  Yesterday the bullish push produced some very nice gains for me but it’s a shame they were not able to hold on to the daily highs.  At the end of the day the bears were gaining control but until support is breached I’m not going to worry about it.  And though I’m not going to worry about I’m going to plan to take profits on trades faster than normal.  A stock that gaps up or down in my trade direction will be considered a gift and I will quickly ring the register.  Keep that in mind as we continue to chop in this range.

We have an oil status report this morning at 10:30 eastern and a Fed speaker in the early afternoon.  Oil futures are currently pointing higher but keep in mind a surprise build in supply will not only affect oil but also the market as a whole.  A surprise decline in supply, on the other hand, could prove to be bullish overall.

RWO room will be open today but I will have to take it slow.  Between the fits of coughing and a weak voice it may have several starts and stops but I will muddle through the best I can.

Trade Wisely,

Doug

Click Here to View the Morning Video

Good Morning and sorry I was not able to get anything out prior to the open.  Although I was in the hospital overnight I am feeling much better and should be back on my feet tomorrow.

I am severally handicapped this morning using an iPad to look at charts for there are a few things that I wanted to share.  First, I sold my FCX position on the gap up this morning, I also sold my SQ position collecting nice profits on both.  If you have not sold the short calls in MSFT I suggest doing so today.  If you have not sold the BMY short calls that’s okay but just know that I have suggested that they should be sold.  We will be waiting for both stocks to get a move higher to sell additional calls.

A few positions that you may want to consider; PBR is looking really good after breaking the wedge and pulling back.  Consider the APR 10 calls because of the great price and nice open interest.

BABA gaped up to much to chase so we will have to wait on it.

NFLX broke out and is holding nicely keep a close eye on it for an entry.  Earnings will be coming soon but often stocks like this will rally toward the earnings date.

AIG may be setting up keep a close eye on it.

CVS is set up.  It reports on 2/9/17.  The April 75 calls are okay but the better volume is in in the May 75 contracts but either should work.  If you want to lower the cost of the trade consider selling the April 90 strikes for a debit spread.  Just keep in mind the earnings date.

I will post this to the website but if someone could please post in the room that I had sent this out that would be very helpful.  Thank You!  FYI, There is no video attached.

Trade Wisely,

Doug