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The Tail Is Wagging The Dog!

Your guess is as good as mine. Look for
waves tomorrow, good or bad. Keep looking
at those charts, Tenaris a good example.
Watch for breaking of resistance on market.
Get the latest at
TradingTrainer.com.

Hey trading team,

This is A.J. on Tuesday, September 13th 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.

It happened like I said it would, yesterday. The
market for sure was more volatile today than
yesterday. There is a lot of confusion going on; a
lot of uncertainty. How bad was the disaster in the
Gulf? Was it 10,000 dead or 200? How bad is the
energy situation? Is demand softening? Is the oil
and gas supply from the Gulf resuming? What’s the
situation with inflation? Do we need to worry
about the Fed raising rates to keep it at bay? If you
haven’t noticed, no one has a clue. If they did, than
their answers wouldn’t keep changing on a daily
basis. What does this do… well, it makes people
really tired. It’s like they’re always chasing the
answers. The population when surveyed seems
sour on the whole thing. All this back and forth
affects people’s behaviors in their investing life.
When that happens in mass, you can see it in the
broad market movements. Last Friday was for sure
an accumulation day. Today was somewhat of a
distribution day. Right now investors are lagging
the news rather than leading the news. The tail is
wagging the dog versus the dog wagging its tail.
The question is how much quiet time does the
market need? Right now there is so much influence
on the stock market; gauging market direction
through trend following charts is difficult. We have
to resort to price patters like the Lincoln hat’s that
formed Monday forecasting today would be a down
day.

Team, I’m still in my stocks because tomorrow’s
reports about retail sales and from the energy
department on oil reserves will make substantial
waves that I plan to catch.

Team, apply technical templates to Tenaris - ticker
TS. Each template has its own personality; its own
style. They all do basically the same thing. They
each have their plusses and minuses… but if you
were on the ball, you would take Ternaris and study
the templates forwards and backwards. You’d go
through them over and over till you could do it
yourself. This is it team. This is the technicals we
use to win – and win big at options. Learn it. Do it.
Get good at it. Okay?

Let’s check out the example portfolio section. My
EOG resources October 60 calls closed lower at
$9.10 an option. My current return on my invested
capital is 47%. I’ve been in that trade for 53 days.
My Pacificare Health Systems November 75 calls
closed lower at $3.50 an option. My current return
on my invested capital is 21% after being in the
trade for 53 days. My Quicksilver September 40
Puts closed lower at $0.20 an option. I’m in the red
with a return on my invested capital of -88% after
being in the trade for 27 days. My Tenaris October
105 Calls closed lower at $10.60 an option. I’m in
the black with a return on my invested capital of
34% after 18 days in the trade.

Team, until the broad market indexes break above
those levels of resistance… for the Dow we are
talking 10,700, for the NASDAQ we are talking
2,200 and for the S&P500 we are talking 1,245, I
am going to be very leery of opening any long
positions. The only stock I am currently interested
in is Mentor – ticker MNT. But even then, it’s only
out of curiosity. Nope, right now, my goal is to get
the most out of my existing portfolio and to back
test stocks to learn like I did today with Tenaris.

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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TradingTrainer.com Web Log

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