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Further Room For Upside But These Are Still Not Perfect Conditions
Another good week for the Nasdaq, this time dragging the other main indices along meaning a broader based rally. So, why the “but”? Because there’s also a lot of ragged behavior out there. Because the Nasdaq and leading stocks are over-extended. Because earnings was far from consistent. So, enjoy this run by all means, but do it by managing your trades conservatively. That means protect profits as soon as possible. Market Outlook: A broader rally than previous weeks. I mentioned last week that the higher quality setups were bullish. That has seen follow-through this past week. As I look today, the quality of setups isn’t quite as good. Watch the video for more detail. The Main Indices: The S&P did make its upside breakout as suggested last week. The QQQ is in overbought territory.
Market reviews and blogs
Your best source of investment news from WiseTraders and Guy Cohen.
S&P Poised For a Breakout, But Serious Obstacles Still Loom
The Nasdaq has lurched into even more overstretched territory, the S&P is poised for a breakout, the Dow is trying
Big Tech Leads The Way, But For How Long?
The Nasdaq had a storming week, leading the S&P somewhat, but barely having any impact on the Dow and the
Post Earnings Likely to Be Tepid
The major indices are all pretty much where they were 12-months ago, and with this earnings season limping into its
Support & Resistance with Straddles
Hi everyone. I recently received this email which I thought was worth sharing. “Hi Guy, I have another question. I had a trade on GE the other day (58% profit in one day straddle and strangle). I boug…
Recent bull flags
Hi everyone. There have been quite a few decent flags out there recently … here are a few that TradeFinder has spotted for us. Notice that NONE of these bull flags was occurring in a downtrend….
More about flags and prognosis for 2008
Hi everyone. First, thank you for your emails with your success stories! I love hearing about your great trades and overwhelmingly this has been the case. Of course with trading there are also challen…
Trade Flag Patterns with Illuminati-Trader
Did you know you can use Illuminati Trader not just to trade straddles and strangles around earnings season, but also to trade stocks up or down at any time of the year! This means you can use the sit…
Time Decay with Options
Theta T The characteristic of option prices to change purely as a result of the passage of time is known as time decay. Theta is a measure of how time decay affects the option premium. As such, theta …
Volatility and Options
There are seven factors that influence an option’s price:
The type of option (call or put)
The price of the underlying asset
The exercise price (or strike price) of the option
The expiration da…
Trading Options inside the Bid-Ask Spread
The Bid-Ask Spread is the amount by which the Ask exceeds the Bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest pric…
