No Sat plans? Now you do! Two complimentary back-to-back events happening today:
1pm EST: Jason Bond Picks -> small-cap swing trading workshop, from how to set up your scanner to managing swing trades
2:05pm: Cheddar Spreads ?-> learn how to take spread trading to the Next LEVEL [NEW]
Just like I expected this week, we had a nice rally for the market. I think the “easy money” trade is off the table now and we’re going to have to be very selective on stocking picking for the week ahead.
We are now starting the last quarter of the year, which is historically a very good time for the market.
But, this whole year has been good… so the question is are we getting ahead of ourselves, or will the good times roll on? ?
I think we will see the market digest the recent gains and probably have a slight 1-2% correction soon, and then make a move up to new highs for the year after that.
I’ll be watching the situation closely and let you know the next time I see a “gamma trigger” move setting up!
We got a lot of news behind us this last week. It appears the market liked the PCE numbers that came out this week.
Though CORE PCE rose, it was in line with expectations. This along with the jobs reports showing increased unemployment yesterday seems to have investors excited.
I didn’t really think it would ever be like this, where bad news is good news.
Unemployment on the rise? Inflation ticking higher? Let’s bid this thing up!
I don’t have high hopes for the US economy long-term, but the stock market can do anything. Remember the old trading adage here:
“The stock market is not the economy.”
I’m always going to base my trading decisions on what the charts are telling me. If you focus too much on what should happen, you’ll miss what IS happening.
And that will wipe you out.
Now, let’s get to our end-of-week trade review.
Here’s how my Bullseye Trades worked out that I laid out for my members on Monday this week (before the market opened).
? Here Was the Plan
On Monday morning, I sent out the following trade plan. I’ve redacted the ticker symbol because the trade is ongoing, so let’s focus on the market outlook.
If I had held on longer, I could have seen a gain over 266% if I stuck with the trade a few more days!
(Trading is hard, don’t expect to replicate gains)
Oh well, that is part of trading and I am never unhappy booking profits and moving on to the next one.
My Bullseye idea from this week is still open. While I closed half of it for a profit already, I am hoping to see even more next week. We shall see…
As I head into this week, I am not sure everything is going to be smooth sailing for the markets.
We are now venturing into “overbought” territory on the hourly charts and are starting to slip under the bullish levels I look for.
In a market like that, I think it pays for me to take quick shots and not hold positions too long. If I can manage to get a quick gain, I plan to take it and not hold out a big 100%+ move.
While I do think the tech sector is going to stage a strong recovery into the end of the year, I went with one of the strongest stocks in the entire market right now for this week’s Bullseye pick.
If you haven’t been following this story, you might think it is some “AI-powered tech stock” if you simply looked at the chart. But no, it is a “boring” old pharma stock that just happens to be one of the few companies managing fantastic growth in that sector right now.
(Obviously only Bullseye subscriber cared about my ideas, right?)
This week’s idea is a very strong stock that has been in “rally mode” for months now, but it hasn’t shown any signs of letting up yet. My thought was that it would just keep powering higher from here if the markets hold up.
My plan was to start a half-sized position on Monday, hopefully on a slight pullback for the stock, and leave room for an addition if the stock has a slight pullback this week, but stays above my stop-loss price.
All of that happened just as I planned for. Now, I am just waiting to exit the final half of the trade (hopefully for a big profit) and will let you know how that ends up!
When it comes to my huge call on the QQQ and the market over the last 2 weeks, you might think I’ve got a crystal ball?
That’s not the case. I just know how to read the markets and use solid technical analysys to knwo when things are likely to move up (or even down).
Keep in mind I had no idea what was in the economic reports that showed the economy is slowing like the Fed wants
My bullish call was based completely on technical analysis. Overextended tickers tend to rebound. The “positive” data showing our economy is crumbling just added a bit of jet fuel ?.
And it played out perfectly… I hope you were paying attention!
? Here’s What Happened
Unfortunately, I can’t discuss this week’s trade result because it’s still ongoing. (Sorry, but it hasn’t been declassified for nonsubscribers yet.)
Instead, let’s review a previous trade idea and see how that worked out.
Recently I sent out a trade plan on CAVA to Bullseye Trade subscribers. It included my complete trading plan for the stock (like the email above).
Why did I have CAVA as my TOP IDEA that week?
There was a major “Gamma Trigger” forming on the hourly chart, so CAVA looked like it was ready to pop. When the hourly bars start trading above the Keltner midpoint, it’s massively bullish.
Although I had my entry price ready, the stock took off before I could get in. Man, I wish I could have.
Just look what happened right after the alert.
So why didn’t I chase this trade?
When a stock starts moving up, calls get extremely expensive–the same with puts during a big drop.
With options, you have to be in the trade BEFORE the move.
? Critical Lessons
To understand how volatility influences options prices, you just need to work through the following equation:
I’ll leave that formula for the math geeks out there. I’ll be busy making money trading.
But this is the Black-Shoales formula used to determine theoretical option pricing.
All you need to know for today is that the higher the implied volatility (IV), the higher the options price.
When IV is low, it benefits the buyer.
Options are cheap, and they’ll increase in value not only if the stock moves in your favor but if volatility increases.
Option sellers want high IV because they get more premium on their trades.
?PRO TIP: When volatility is low, consider buying options, and when it’s high, options selling strategies are best.
Join Bullseye Trades now and start getting the options education that will take you to the next level.
You’ll get my complete game plan every Monday, unlimited access to our training library, the trading ebook “How to Become an Alpha Hunter,” and alerts on trades I make sent directly to your Raging Bull app.
So get in here, what are you waiting for?
My next idea will be dropping on TUESDAY this coming week – before the market opens of course.
I don’t want to see you miss another great idea, so make sure you get on that list right now!
P.S. Like to keep in the know of private investing opportunities? Join Boardroom Investing HERE as we are about to reveal our newest partner next week!
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