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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. 

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Market reviews and blogs

Your best source of investment news from WiseTraders and Guy Cohen.

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…

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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….

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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 …

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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…

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