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Market Rises To A Neutral/Bullish Market

Market increases with heavier volume. “Black
Gold” prices drop as Gulf comes back online.
Fed’s may increase interest rates twice this

year. Take a look at the charts. Get the latest
at TradingTrainer.com.

Hey trading team,

This is A.J. on Wednesday, September 7th with your
Trading Trainer web log. We are your home of
market insights for the serious option trader.
This web log will cover the events in the market
from today as well as prepare you for watching the
market tomorrow.

Stocks started lower today but closed higher on
heavier volume. That was enough follow through to
yesterday’s rally that I have bump up the levels
of support and resistance on our index charts. I
also notched up our trading bias from Neutral to
Neutral / Bullish. Quite a few TradingTrainer.com
members have been reporting back to me that they
made amazing gains on long trades in the past two
weeks. I’m ecstatic for them.

Oil prices dropped today on news that the Gulf
Coast was coming back online as far as producing
and refining the black gold, faster than expected.
And, the bond market responded to reports that
inflation fears are still around with yields of
the 10 year long bond bumping up. The expectation
is once again that the Fed is going to increase
short term interest rates two times this year; so
much for a break in the name of disaster relief.

I stayed away from Alcon today. There was no
follow through. Price dropped below resistance at
$120 per share on heavier volume. That level of
resistance is strong; possibly stronger than
expected. We’ll continue to watch Alcon as an
opportunity throughout the week.

Team. if you have not looked at the index charts
lately to get a reading on how the broad market is
doing. Today is the day! Look at the charts and
see if you see what I see. Besides a long term
trend, the broad market has confirmed a new rally.
Till we have a confirmed trend, open long
positions with a little trepidation, okay?

Team, did you notice CERN finally broke out of its
consolidation pattern yesterday. Check out that
chart team!

My EOG resources October 60 calls closed higher at
$7.50 an option. My current return on my
invested capital is 21%. I’ve been in that trade
for 47 days. My Pacificare Health Systems November
75 calls closed higher at $4.10 an option. My
current return on my invested capital is 41% after
being in the trade for 47 days. My Quicksilver
September 40 Puts closed flat at $0.40 an option.
I’m in the red with a return on my invested
capital of -75% after being in the trade for 21
days. And my Tenaris October 105 Calls closed
lower at $13.90 an option. I’m in the black with
a return on my invested capital of 76% after 12
days in the trade.

I held off of getting out of Tenaris after I got
my lagging stop loss alert because I want to see
the effects of tomorrow’s energy department oil
stocks report on the market.

This is my plan for tomorrow. I’ll be setting my
stop loss alerts for EOG resources at 10% return
on invested capital and for Pacificare Health
Systems, I’ll set it 20% return on invested
capital. My stop loss alert for Tenaris will be
set at 65% return on invested capital but, again,
I want to wait for the 10:30 a.m. EDT report. For
all of these positions I’ll be watching where
stock price is relative to the 7 day moving
average. Throughout the day, I’ll be watching ACL
and AMZN. I have to be honest team, I’ve still
got the willies. If the energy report is
shocking, I wouldn’t be surprised if the market
pulls back. Tomorrow, I’ll be more apt to stay
out of new positions taking a seat on the
sidelines than I would be getting in. Just like
yesterday, it would have to be compelling for me
to open a new position tomorrow.

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!


About the Author
A.J. Brown is a full time options trader, author,
speaker and consultant. Watch him review stock
charts on video each day, listen to his audio
newsletter where he leads you by the hand
through the end-to-end process of successful
options traders and get tips and tested strategies
proven to boost your return on your invested
capital by massive amounts in his membership
site at TradingTrainer.com today.

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