Written by admin

Slight Gains On Light Volume, Beware!

Employment reports came in better than expected. The indexes closed higher. But, volume was very light causing us to question the upward price movement. Where were our institutional traders? Be apprehensive if you don’t see volume. 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 9th 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 last Friday and last week as well as prepare you for watching the market tomorrow and for the weeks to come..

We had very little volume on Friday. Employment reports came in better than expected, so with whatever volume we did see, it created a price movement in the positive bullish direction.

But remember team, that bullish price movement didn’t come from our institutional traders, did it? Our institutional traders leave a big foot print. On Friday we can deduce that our institutional traders took the day off. So, here are the conclusions you can make. We are in a bearish trading bias…. We should be closing long entries and looking out for short entries.

There is a good chance there will be some rebound buying maybe as early as next week. We want to see that institutional trader foot print – which is what again, team? That’s right, volume. If we see that, we want to look back at some of the charts that have established bullish trends and are triggering right now. An example is Alcon, ticker ACL.

Team, remember this from my book and from the teleclass… we don’t do our technical templates for the sake of doing technical analysis. There are tons of places out there that do that, teach technical analysis for the sake of technical analysis. What we are doing team is using technical analysis to see the behavior of stocks on our watch list and to see behaviors of our watch lists as wholes to understand the broad market.

We’re looking to understand where the big monies are flowing, what those institutional traders, those few people that control the most of the money being traded… we’re looking to understand how they are feeling and where they’re taking the market. By understanding these behaviors, the insights we gain will make us the best investors that have a leg up against everyone else.

You can only get this type of analysis here folks. Amazingly powerful. It knocks my socks off every day what we have going for us that no other trading community does.

My Techne January 55 Call closed down Friday at $3.30 per option. I’m 45% into my initial investment on this one team after only 3 trading days.

Team; tomorrow is a day of no news. It’s Christopher Columbus day. Volume is the parameter to watch tomorrow. If you see it combined with price movement, by all means act. If you don’t see volume, then beware.

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.

~> You may reprint or distribute this article as long as you leave the content, the links and the resource box at the end intact. <~

Categories: Blog

Leave a Reply




Video: Covered Call Writing  

Learn How to Write Covered Calls

In this series of 6 videos, I show you how to execute my covered call writing strategy from start to finish. Watch the first video instantly when you click for more information. Click for more »