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Tread Lightly In Neutral Market

Equal pressure is shown in broad market.
Watch for bull market to keep going
despite movement. Lower profit targets
help in time of indecision. Also what I’m i
nvolved in. Get the latest at
TradingTrainer.com.

Hey trading team,

This is A.J. on Teusday, September 27th 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 today as well as prepare you for
watching the market tomorrow.

An interesting phenomenon happened with the
broad market today. There was equal pressure
from the bulls and the bears. Volume and price
for the most part, across the indexes was flat.
So what does that mean? Well it means the
market just doesn’t know. And neither do us
so we need to tread lightly till a direction
becomes more evident.

I opened two long positions today by buying
calls. I bought the Autodesk November 45
Calls at 1.90 per option. The bid price closed at
1.80 eating into my initial investment by 5%. I
also bought the Joy Global November 50 Calls
at $2.00 per option. The bid price closed at
$1.80 eating into my initial investment by 10%.

Team; today with the flat movement of price,
you would almost think the market petered out
on its current bullish rally. But, team, a
petering out is accompanied by a reduction in
volume. Volume has not diminished. Today
was instead a day of indecision. To cap this
bullish rally off in the short term, what we are
looking to see before the week is out is a day
where price increases by 1% or more on heavy
volume. If we see that, we will be confident in
the rally’s staying power. In the mean time
team, I’ll be looking at stocks the way I did
today… to find those that can stand on their two
feet.

Don’t be afraid to at least paper trade a stock
that looks good despite the broad market’s
indecision. Just be aware that an underlying
push by the broad market is missing and
therefore you need to lower your profit targets
to a more realistic level like 25 to 50%.

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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