Real-time options education and strategies
(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
I have some older content that I don’t have in any post so that’s all getting dumped into this post. I hope you find it worthwhile. 2021-08-16 Monday (1) I established a bearish position in SPX on Friday afternoon by buying Sep3 Put Vertical Debit spreads. I already own some DH’d bullish positions in Oct … Read more
(1) Latest update on SPX. Failure to make a new low below the opening range low of 4367.73 is bullish. If price can now get back above today’s 4418.61 high then it’s quite possible that price will not reverse at 4425-4430 resistance. It’s clear why /ES found support here! It was both a (near) touch … Read more
(1) DJI up against strong resistance from 2 sources; one is last week’s HB and the other is from the 8-hour SMA declining upper band. Just because price should move lower from this area doesn’t mean it will however, either way, I’ll learn something about the relative strength of the buyers and sellers this morning. … Read more
In the past I’ve highlighted many times the importance of the 8 and 20 SMA bands for analyzing price action. I’ve just recently introduced you to the 1.5 standard deviation 20 SMA Bollinger Bands. The Bollinger Bands can add another dimension to your analysis because many of the strongest directional moves occur well away from … Read more