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Watch That Oil!

Oil prices explode as new storm enters
picture. Waiting to see what Feds say.
Keep an aye on DOW for a push in broad
market. A good day as I close a trade
today. Get the latest at
TradingTrainer.com.

Hey trading team,

This is A.J. on Monday, September 19th 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.

There was no news today. The quadruple-
witching effect from last Friday had warn off.
Volume dropped. There’s another storm in the
Caribbean that investors are speculating
about… they’re thinking it’s on its way to the
Gulf, this time to Texas to deal another deadly
blow to domestic oil production and refining.
The price of oil shot up by the largest flat value
in history. The stock market retreated on the
news. Everyone wants to know what the Fed is
going to say tomorrow. Most people stayed on
the sidelines today in anticipation..

I personally am still perplexed by the key
reversal down patterns that we identified on the
weekly price chart this past weekend. Those
patterns are signaling down times coming up in
the not too distant future and lasting for a while.
We will need to monitor that.

As for today, I threw out a real high selling price
for my EOG Resources options right at the tail
end of amateur hour and wound up getting the
price I had asked for. The morale is, you’ll
never get what you want if you don’t ask. And
during amateur hour anything is possible. All
that is left in my portfolio now is my Tenaris
options. They appreciated nicely today so my
trailing stop loss order did not trigger. Until the
broad market indexes blow through their
respective levels of resistance, 10700 for the
Dow, 2,200 for the NASDAQ and 1,245 for the
S&P, opening long trades based on a trend
following templates will not really be my focus.

Like I said earlier, I sold my EOG resources
October 60 calls today at $14.10 an option. My
return on my invested capital came in at 127%
for 59 days. Not bad. My Tenaris October 105
Calls closed higher at $15.90 an option. I’m in
the black with a return on my invested capital of
101% after 24 days in the trade.

Team, the focus tomorrow will be on what the
Fed says in the afternoon. Not so much their
actions, but more about what they say. Right
now team we can’t count on any extra push
from the broad market. A push up would
happen if the Dow would break up through
resistance at 10,700. A push down would
happen if the Dow would break down through
support at 10,500. Right now I am very close
to dropping our trading bias, across the board to
neutral. At this point any trade you make is
really going to be based on just the merits of the
underlying stock itself. Pairing back your profit
targets at a time like this is called for.

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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