Traders and investors are zoomed in on earnings reports as we walk into a new earnings season. My personal take is that I’m excited for earnings season to be over with so the headlines and ‘noise’ if you will can come to a potential halt, at least in the short term.
Now in the next few days if Markets want to tank, so be it, a quick pullback would be welcomed in my opinion and I’d look to buy to open SPY Puts. SPY is currently very close to resistance with the next stop being the 50 day simple moving average line. We’ve seen green to red moves and red to green moves but that doesn’t matter. Options are a fantastic trading vehicle to take advantage of those. Some make the argument.. “the more the better!”
That being said, if markets want to run I do have my eyes on a couple charts (from E*Trade Pro) in particular via February’s at-the-money Call Options applying an easy to follow buy to open followed by sell to close strategy which I teach extremely often.
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$NVDA – Increasing volume basing on the 20 day simple moving average line with $10+ room to run before 50 day simple moving average line resistance. If that price action takes place a nice % return on the proper at-the-money Call Options could pay well. Nice tight stop below the 20 day simple moving average line putting the reward in our favor when taking risk / reward rationale into account. Even if markets don’t go green and take this one with it, worth watching 24/7 in my opinion as a semiconductor name which has been known to create nice moves in the past.
$TWLO – Increasing volume basing on the 3 exponential moving average line. Cautious of the inverted hammer candle but an inverse head and shoulders setup below $100 and the path of least resistance is to the upside, maybe even the $110 area. Make or break at resistance here (either momentum gets behind it or it doesn’t). Increasing volume is a positive sign in this case. Should resistance break and a stair stepping move take place, at-the-money Call Options could make for a healthy trading opportunity. Watching for buying signals should a bullish move take place applying two of my favorite upside oriented tactics, the crossover and inverse head and shoulders on intraday charts should they take place. If not, worth an eye going forward.
While these are Call Option oriented charts to watch, my system is applicable in bull & bear markets and members know that. The best or worst of times, I’ve got your back especially applying my unique and extremely popular premarket SPY Trades of The Day on a daily basis. You can easily learn more about that here… You shouldn’t be sleeping on these.
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