UPDATE–Unusual market conditions are creating an urgent opportunity. This climate is ripe for crushing surprises and also account boosting swings. I am updating my webinar tomorrow to show how you can be in the best position for exploiting this climate. Sign up here to make sure you don’t miss it.
Geopolitics are the focus of the news, but they’re not having a major impact on the main market indexes. There are, however, some interesting technical setups forming that could greatly impact market movement and create some explosive return profiles.
Before I get into a new trade idea, I’d like to check in on the XLU idea from last week.
XLU is firm with more upside showing. This has worked out with a slow grind higher that appears ready to continue. As always, I have to let winners ride and would be looking at a stop loss on a break of the 10-Day Moving Average, as that was the trigger for the bullish thesis.
There’s a sector of interest to me now because it’s been beaten down so badly. It’s not necessarily a high probability trade, but if timed right, it could get a short-squeeze and really help the options leverage pay off nicely.
That sector is the airlines, via the ETF JETS:
The downward trend has been consistent and aggressive, but I’m starting to see signs of a reversal. The MACD is showing flat and has been for over a month, showing a lack of momentum to the downside – it’s simply a grind. Additionally, the RSI has been sitting under 30 for a long while, and that simply doesn’t normally happen. Finally, implied volatility is starting to drop, which gives a leveraged opportunity with defined risk to the upside.
Overall, there are a handful of interesting setups coming out right now, but it’s still a slow dull market without a major trend. However, doing the homework to find the setups that do exist can catch an unsuspecting market off-guard and give a very nice return.
As always, please go to http://optionhotline.com to review how I traditionally apply technical signals, volatility analysis, and probability analysis to my options trades. As always, if you have any questions, never hesitate to reach out.
Keith Harwood
Keith@optionhotline.com
See Related Articles on TradewinsDaily.com
Important Update And A Set Up Beneath The Headlines
Why Yesterday Could Mislead You
Chart of the Day: Dollar Tree (DLTR)
IBM Pattern Reveals Its Next Move
Discover TNET: PowerTrend ‘Buy’ Signal
© 2023 Tradewins Publishing. All rights reserved. | Privacy Policy | Terms and Conditions | Contact Us
Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, https://www.sec.gov/reportspubs/investor-publications/investorpubsautotradinghtm.html
TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
1. The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing ("TradeWins") a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis.
2. TradeWins' Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services.
3. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services ("Subscriber") should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber.
4. You should trade or invest only "risk capital" money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
5. All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities.
6. Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.
7. No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses.
8. The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber's own election and for the Subscriber's own risk.
|
0 Response to "Important Update And A Set Up Beneath The Headlines"
Post a Comment