4:45pm (EST)
1. Market Summary
2. Freeport-McMoRan Copper & Gold (FCX) Does Us a Favor
3. Can McDonald’s Hit Par ($100)?
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
= = = = = = = = = = = = = = =
1. Market Summary
Last week we talked about how the bulls gave us solid hints they were going plow past Dow 12,000 and S&P 1,300 but what they failed to warn us about was Egypt. Charts can be a great tool and perhaps the BEST tool when starting your research. Why? Because no matter if you have heard of a company or not, all you have to do is look at a chart to find where support and resistance are at (S&R). You can do it in, um, about 5 seconds if you are just looking to see an uptrend or downtrend but when you look at S&R levels, it requires a lot more homework and thinking outside the box.
So many of the talking heads and money pros get so caught up in what the market is doing from day to day that they fail to even look at a chart because they are so worried about getting in or getting out on a stock that is hot or falling out of favor. The key to beating the crowd is to stay focused and realize that in TRENDS, 75% of stocks move with the market and the key is finding stocks that are showing momentum.
In a bull market, you want to buy call options on stocks in strong sectors showing strength. In a bear market you want to buy put options on weak stocks that are sinking and have broken business models. In a flat market you want to buy both calls and puts.
These are some of the tools we use to separate us from other option newsletters because we don’t follow the herd and we don’t spit into the wind. In other words, we don’t bet against a trend.
Get the rest of our thoughts inside our Members Area on where the market is headed by clicking here.
]]>