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Uncertainty Brings Little Price Movemant!

High volume but little price movement.
Many moving money into Gold as inflation
looms. Forecast: tomorrow an up day.
Check out charts on ticker FDG. Get the
latest at TradingTrainer.com.

Hey trading team,

This is A.J. on Thursday, September 15th 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.

Okay… let’s think about what happened today.
We had heavier volume, in some cases up to the
100 day average. We had very little price
movement from open to close. So what the heck
is happening? We had our first wave of Katrina
victims sign up for unemployment. We had our
consumer price index tell us what the producer’s
price index told us on Tuesday, which is that the
high energy prices have yet to penetrate into the
costs of everything else; which is considered good
news. And, we had our New York and Philly Fed
manufacturing indexes say their respective
growths have spiked down; which is also
considered good news for those that fear inflation.
But, probably what the market chose to focus on
what the fact that those same manufacturing
indexes also pointed towards way higher
manufacturing costs and way higher outlook for
costs in the future. That shot the fear of inflation
right into all investors. We could see that by the
record number of investors moving their money
into precious medals like gold.

From a technicals perspective, today the Dow
formed a key reversal up price bar pattern,
forecasting tomorrow to be an up day. I’m still
not ready to re-calibrate our levels of support and
resistance on our index charts. And, I don’t want
to bring down our trading bias just yet. I want to
evaluate the weekly chart, over the weekend
before making that call.

Team, the Fording Canadian Coal charts - ticker
FDG are perfect text book examples of how to use
templates to trade. Each template we use 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 these four charts for Fording
Canadian Coal and study them forwards and
backwards. This is it team. This is the technical
analysis we use to win – and win big at options.
Learn it. Do it. Get good at it. Okay?

My EOG resources October 60 calls closed higher
at $10.50 an option. My current return on my
invested capital is 69%. I’ve been in that trade for
55 days. I sold my Pacificare Health Systems
November 75 calls today at $3.80 an option for a
final return on my invested capital of 31% after
being in the trade for 55 days. My Quicksilver
September 40 Puts closed flat at $0.10 an option.
Tomorrow’s my last day to do anything with that.
I’m in the red with a return on my invested capital
of -94% after being in the trade for 29 days. My
Tenaris October 105 Calls closed higher at $12.20
an option. I’m in the black with a return on my
invested capital of 54% after 20 days in the trade.

Team, we may see a rally in the blue chips
tomorrow. I’m only saying that because today we
had a heavy volume stale mate between the bulls
and the bears and the Dow gave us a key reversal
up pattern. It’s going to be fun to watch. I’m still
trying to make the most out of my portfolio. And,
I don’t see myself opening any trend following
trades till the indexes have broken through those
heavy lines of resistance we talked about earlier in
the week. I do have my eye on Apache - ticker
APA tomorrow, for a quick win.

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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