Hello Traders, I am here sitting in class going over some charts as the professor goes over some finance stuff that I already know. In any case, it is the weekend so we take these time to go over our charts and see what opportunities are setting up. If you guys have been following the blog closely you will see that I have been posting a lot of good trade ideas. Retail stocks have been on fire and so have commodities. These energy stocks are pulling back with this market consolidation, and if the market decides to rollover a bit more they should be even better buy opportunities. I will be focusing on coal stocks to buy on the dip with calls. As you guys know, I have been trading options more as I am not actively daytrading right now. So far I am 2 out of 3 on my option trades. I currently own some ( 9 Contracts ) SDS May 20x calls as my target on SDS within the next month I believe is around 22 a share. If that is the case the options that I picked up at 1.29 avg should be worth over 2 bucks if SDS makes it to 22 a share, not including the time premium that could be left in them. If we get a sell down on Monday though, I think I will be taking most of the option trade off and keeping the rest to hold and see with small profit stop. So now lets take a look at the /ES chart I have posted below. You can see that everybody is watching this head and shoulders pattern so that they can participate in this strong market at a cheaper level. Market did get some selling action and our channel system is still showing us bull traps on the daily. I believe that the market has a good chance of going back down at least towards the 1310ish area and thats where I plan on selling my calls for over a nice 50% profit or even more. I will keep you guys posted on the trade of course so be sure to tune back in. Trade ideas posted below and more to come. I am also trying to get my screen recorder program to work because it is giving me problems as of recent.
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