Futures were slightly weak as we hit the rack last night ahead of the European open suggesting a lower open this morning but had recovered ahead of this morning’s Nonfarm Payroll report. Wall Street certainly traded off the headlines as the Unemployment Rate dropped to 7.3% from 7.4% and that 169,000 jobs were added. However, the devil is always in the details and after a closer look the bloom came off the rose.
The Numbers for June and July were revised lower to 172,000 and 104,000, respectively, from 188,000 and 162,000. After a surge at the open, the indexes have broke down like a rented mule as the bears once again push support but have since recovered and are back in the green.
We mentioned last Friday that we expected this week to be bullish with a rebound possibly lasting into next week but today’s pullback and rebound needs to be watched carefully as there could be further weakness if the bulls can’t hold support into the close.
We have also been talking about the current 2-month trading range and how hard they are to trade. Sometimes they can be frustrating but if you know where the tops and bottoms are at (support and resistance) then they become easier to trade. One of the biggest factors in being successful during these trading ranges is to buy puts when the market is topping and to buy call options when the market is selling off.
At times, if you are short and the market appears to be on the verge of a breakout, you get nervous. If you are long, and the market is at the bottom of its range with a correction seemingly on the horizon, you also get jittery. These are natural reactions but it is important to trust your charts and time frames to keep your emotions in check.
We have started nibbling on put options because we have also said that after a possible push to the top of the trading ranges, another pullback could follow that could test the July and June lows. Of course, charts cam change but that is the roadmap we are preparing for over the next 4-6 weeks.
We have done super swell trading the current range as we have played both call and put options since mid-July after trading call options for the majority of the year. We have hit on 70% of our trades and our closed trades portfolio is showing an astounding gain of 160% coming into the week for the Daily. We are one of the very, very few option newsletters that keep proven Track Records year-after-year and we are on pace for our sixth-straight profitable year.
We are also the only options newsletter that works every day the market is open and provides twice Daily updates along with Trade Alerts throughout the day, depending on market conditions. We also have auto-trading partners that will trade YOUR account if you cannot follow us all day. The execute new trades or take profits the second they get Trade Updates as they are copied on all of our newsletters so you will never miss a trade AND more importantly, you will be in ALL of our trades.
We have traded up and down markets that have included some tough trading ranges over the past 6 years. We have recommended over 1,000 trades and we are close to a 70% win rate over the years.
Our point is that we get swamped with emails when the market gets volatile and from time-to-time we like to calm the storm but giving you sound advice to help keep your emotions in check. We have added hundreds of new members over the last few months and we also like to remind new readers that it is important to read and study each Monday morning Daily update and every Sunday night update for the Weekly Wrap as the charts we show you are worth a thousand words.
The other technical indicators we use will also provide you targets on what could change the trend or keep the market in a trading range.
Today’s session has been very volatile and we mentioned it would be picking up as we headed into September.
The Dow has made a 200-point round trip and is currently up 16 points to 14,953 while the S&P is higher by 4 points to 1,659. The Nasdaq is advancing 7 points to 3,665 and the Russell 2000 is gaining 3 points to 1,031.
We have been busy and long-winded today as we are doing some early homework and we have added a new Trade to our Weekly Wrap portfolio. We continue to suggest new option traders and those of you that are newbies to stock and options to give the Weekly Wrap newsletter a try. We profile one company a week and give you a fundamental and technical look at what could move the stock. We also provide earnings updates and we have expanded our trading parameters as we are now recommending short positions and possible LEAP option trades.
The Weekly Wrap portfolio is 33-3 this year and 77-5 over a 3-year period. We have doubled a $10,000 trading account by trading stocks and writing options. You can request ALL of our Track Records for both our Daily and Weekly Wrap publications and remember that trading is for the long haul and why we want you to stay with us month in and month out.
We are here to give you a great education and like we have mentioned, September could be a month to remember!
We have some last minute updates before we kick back and watch the rest of today’s action and like we mentioned, we have already started our homework for next week. We will be back Sunday night/ Monday morning so until then, have a great weekend everyone!
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