We have a mixed market and we may have hit a temporary bottom. We could see a dead-cat bounce today but we aren’t worried. We have locked in profits and set HARD STOPS on the other half of our positions.
We have been sleeping weird hours over the past few weeks as we try to get a read on the overseas markets while at the same time trying to see how our markets will react to the bevy of news that continues to embellish Wall Street. It has paid off.
We have often said trading is for the long haul and since we have started Momentum Options, we have never had a losing year. At times, trading ranges and headline breaking news have whipsawed us out of positions but overall we continue to cover the market’s moves like grass on dirt.
We often get asked why some years were better than others but here is the bottom line. Choppy markets are hard to trade and all we try to do is stay even by playing calls and puts. Trending markets is when we make our bank and we usually trade more contracts than usual because a clear trend is in place. Over time, we have winning streaks and losing streaks but when we tell you a TREND is in place, we usually stay hot.
With the market coming down to our next wave of support targets, there is still more downside risk, but we are also seeing GREAT setups for future CALL option trades.
We will cover more tomorrow but for now we have to roll.
As we head to press, the Dow is down 67 points to 10,588 while the S&P is up 3 points to 1,102. The Nasdaq is higher by 30 points to 2,365. Subscribers, check the Members Area for the updates and more Profit Alerts! We may also release a NEW TRADE today so stay tuned…