The major U.S. stock indexes are ripe for a pullback. With the evidence of institutional accumulation in many stocks, it is likely to be of minor extent. If that indeed happens, contrarian strategies, such as buying protective puts or inverse ETFs as insurance, may not work out well. How about diversifying in the longer term → Read More
Amazon’s most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $385.00 short call and a strike $390.00 long call offers a potential 53.85% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to → Read More
The S&P 500 has a very consistent cycle. Looking at its daily chart over many years, with few exceptions you’ll find a short-term low set every 1 to 3 months, averaging out around 1-1/2 to 2 months. The Stochastics indicator on the S&P’s daily chart helps identity the short-term lows. Matching up the indicator lows → Read More
Expedia’s most recent trend suggests a bullish bias. One trading opportunity on Expedia is a Bull Put Spread using a strike $94.00 short put and a strike $89.00 long put offers a potential 33.33% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to → Read More
As one reviews the current stock and bond markets, it would be natural to think about the concept of “Inflection Point”[1]. I don’t think that many readers would quibble with me if I observed that markets have been a bit peculiar lately. For example: 1) Last week, the Dow, S&P 500, and Russell 2000 all → Read More
VF Corp’s most recent trend suggests a bullish bias. One trading opportunity on VF Corp is a Bull Put Spread using a strike $75.00 short put and a strike $70.00 long put offers a potential 16.28% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread → Read More
The major indexes have staged breakouts that are hard to miss. Focusing on the ETFs that are easy to trade, the NASDAQ Composite, represented by QQQ, has marched upwards for 8 straight sessions, nearing the all-time highs set back in 2000: The S&P 500, represented by SPY, set a new high: The smaller cap Russell → Read More
United Tech’s most recent trend suggests a bullish bias. One trading opportunity on United Tech is a Bull Put Spread using a strike $120.00 short put and a strike $110.00 long put offers a potential 6.38% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread → Read More
The Seasonal Forecaster newsletter has 13 open stock positions right now: 12 long stock trades and 1 short stock trade. Most were entered in the past two months. Seven are sporting gains of 3% or more. The majority of open positions fall into two general categories: 1. Industrials (manufacturers and service providers) Pioneer Natural Resources → Read More
Kellogg’s most recent trend suggests a bearish bias. One trading opportunity on Kellogg is a Bear Call Spread using a strike $65.00 short call and a strike $70.00 long call offers a potential 9.89% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to → Read More