Real-time options education and strategies
Paul recently published a great post called the One-at-a-Time Portfolio. In it, he showed how struggling options traders can build consistency by holding only one unhedged trade at a time. It’s a great approach. It helped me, and I highly recommend it to anyone who is struggling to find consistency in their options trading. But … Read more
A short squeeze often seems to come out of nowhere but if you look at the price action preceding the squeeze you’ll usually see clues that it was about to occur. See the notations on the ES (S&P 500 futures) 60-minute chart below. As you can see, some of the important levels often reveal themselves … Read more
This is from the twitter feed today. Good lesson on price action!
Paul put on a nice new trade in $AMZN last week. We discussed it a little bit in real time on the Twitter feed, but the trade deserves a more thorough breakdown because it contains a lot of good lessons about price action and trade structure. Paul gave me a set of screenshots and asked … Read more
(1) Looking at the overnight action in /GC (Gold futures). Textbook price action so far this evening starting with the bullish reversal candle labeled #1. It was a relatively large candle with a long lower wick. That type of candle indicates that there was a change in sentiment where sellers had been in control but … Read more
Here are a few stocks I’ll be watching for new entries this week. I’ve gone into a bit of detail on the AMD setup; the others are more general ideas. $AMD Semiconductor industry is looking very bullish. The undisputed leader, NVDA, is extended and not at a great buy-point for me. AMD, on the other … Read more
If you get stopped out of a trade but the larger idea remains valid, don’t be afraid to take another crack at it *if* it sets up again. After falling like a stone for weeks on unrelenting news of Chinese government crackdowns, on August 24th $BABA gapped up right into a strong resistance area and … Read more
(1) Posted this /ES chart on the twitter feed today (see tweet at the bottom of this post). Some textbook examples to help you with understanding price action. The chart was prior to the open of regular trading hours. This chart was from 4 hours after the open. Price broke-out above the 4455 bull/bear line … Read more
Last weekend I posted this analysis of the NFLX price action plus the chart below: 2021-08-15 Sunday: Over the past four weeks NFLX has squandered numerous opportunities to begin a longer-term rally based on a bullish setup. The lower band of a rising 8 SMA is a very good location for a long (bullish) trade. … Read more
The most basic definition of a trend is based on the high and low prices of an instrument. Above is the daily chart of MU but it could be any stock, ETF, index or commodity. Virtually all price charts exhibit the same patterns and behaviors! Let’s start at number 1 on the chart. As you … Read more