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Advancers Versus Decliners Positive

Indexes were mixed. Earnings of single large cap stocks weighed heavy on indexes. How can you evaluate the broad market when the indexes are so heavily influenced? Evaluate advancers versus decliners in the watch list updates. Click here to get today’s free options advice; have A.J. explain option trading to you in everyday language.

Hey trading team,

This is A.J. on Sunday, October 23rd with your Trading Trainer web log. We are your home of market insights for the serious options trader. This web log will cover the events in the market from this past Friday and last week as well as prepare you for watching the market tomorrow and for weeks to come..

Friday was all about driving the broad market with big winners and losers. Caterpillar, a mega large cap industrial, missed their earnings big time. Caterpillar had a substantial drop. It took the Dow Jones Industrial Average with it. Google on the other hand, beat expectations hands down. Google shot up to a new high taking the NASDAQ Composite index with it. But, because these big losers and winners had such influence on the indexes, it kinda threw off our system for understanding the broad market. On, Friday the indexes were just not representative of the broad market. So, we fall to our back up. We look at the number of advancers versus decliners in our watch list and we actually see that the advancers won out on Friday.

What’s really interesting this week, team, is taking a look at the weekly charts for the indexes. These charts, instead of giving us an idea of what to expect over the next weeks to up to 6 months from now gives us an idea of what to expect over the next month to up to 2 and a half years. And, although we got indication last week that we’ve got a confirmed rally (and then with the breakouts we got on Friday we got further validation) we also got key reversal down patterns in the weekly charts for the Dow Jones Industrial Average index as well as the S&P 500 index. That tells me team to watch closely for 2006 and 2007 for there is some pretty prevalent long term bearish pressure.

My Techne January 55 Call closed up with a bid price of $3.70 per option. I’m drawn down by 38% into my initial investment after 17 days. My Apple January 55 Calls closed flat with a bid price of $4.90 per option. My return on invested capital is 6% after 1 day. My Google December 310 Calls closed up with a bid price of $36.60 per option. My return on invested capital is 160% after 1 day. Slam dunk.

Here are my recommendations team; There is no big news scheduled for Monday. That usually means the lemming investors will be running in circles and the institutional traders will be sitting out. We have more earnings reports. Energy stocks will start coming in this week and will for sure bouie the market.

I’m going to wait through the morning before even thinking of opening a trade. In the afternoon, if there is a position I’m interested in and the market and/or the sector is going my way, then and only then will I consider it. If not, sidelines it is.

And, for those of you that followed me into Google, a tight trailing stop loss alert is needed here. Like 15%

Okay, team. I’m done.

Till tomorrow, happy market watching, trading and money making. Trading
Trainer is here helping you create your dream lifestyle.

Best regards always,
A.J.

Click on the below play button to hear the blog as an audio from A.J. himself!

Do you want to learn option trading? Full time options trader, A.J. Brown, reveals option trading secrets in his daily audio / video newsletter that are guaranteed to make you massive profits in less than 30 minutes a day. Visit TradingTrainer.com now.

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