MomentumOptionsTrading.com Midday Update for 3/28/2014
Everybody, listen to me
And return me my ship
I’m your captain, I’m your captain
Though I’m feeling mighty sick
I’ve been lost now, days uncounted
And it’s months since I’ve seen home
Can you hear me, can you hear me
Or am I all alone
…Grand Funk Railroad
For our new subscribers, we like to crank the office tunes on Friday’s throughout the day to wind down the week and to relax and look forward to the weekend. Today’s theme song was on point because there are a lot of Nervous Nellie’s out there.
It remains to be seen if today’s rally sticks or if there is a fade into the close but we have been telling our subscribers not to count the bulls out despite a volatile week.
We started our Weekly Wrap and chart work early this week following the bears attack on the first wave of support. Sometimes as traders it means working later hours or overtime and digging for clues on what could move the market but that is what makes our job so fun and rewarding because the homework pays off.
We have a ton of stuff we want to talk about, but the important thing to remember is keeping your emotions in check.
We use a handful of technical tools and historic indicators to help guide us in making our market predictions and stock and option trades. For the most part, we try to keep it simple as we use channel charting, moving day averages (MA’s), market sentiment, the VIX, historical trends, and our 25 years of market wisdom.
In other words, we keep it simple and we grind it out every single day.
We are having a great year and although we have said we expect 1,909 to print on the S&P 500 before a possible major selloff we could be wrong but picking market tops is never easy.
We were also the only options newsletter (that we know of) that predicted the Dow would gain 3,000 points last year and trip 16,000. We also said there is the possibility the blue-chips gain another 3,000 points in 2014 to 19,000, or they could lose 3,000 points and test 13,000.
We shall see but another important thing to remember is we said volatility would be incredible this year and this can heighten emotions. However, if uptrends lines are holding and nothing is broken, we still have to ride with the bulls.
At some point we could get bucked but our Track Record is 32-18 for the year and we doubt most option services can match our results.
We say this because people get nervous and scared but we also take our trades so we are in the boat with you. In other words, we’re your captain. yeah, yeah, yeah…yeah.
Of course, the bulls aren’t out of the bear woods yet, but we said if they can make it through this week with an up Friday and Monday, then April could be very bullish.
If and when at some point, there is a major pullback, again, we have no problem switching sides and joining forces with the bears. Our Track Records from 2008 and into 2009 shows the incredible gains we made our subscribers when the financial crisis tanked the market.
The 5-year rally since has been hard to believe for investors but for traders that went short Wednesday or yesterday, they are feeling the pain today.
Our portfolios are light because we have planned for the trading range in March and we are using “cheap” options to trade because we never want to be out of the market. If and when there is a clear trend that develops, we like to use higher priced options.
April could the month.
We hope this summary helps our new subscribers (and current) because the market can be frustrating but April option have 3 weeks left before they expire and a lot can happen between now and then.
As we make the turn, the Dow is up 80 points to 16,345 while the S&P 500 is higher by 10 points to 1,859. The Nasdaq is gaining 17 points to 4,168 and the Russell 2000 is advancing 7 points to 1,158.
We gave our bullish price targets on where the bulls needed to be by the close and so far they are on course.
We have updated our current trades in our Daily and there is a chance we take a swing on an earnings trade for our Weekly Wrap for Monday’s open. It will likely be a strangle or straddle options trade but we are still doing pricing and chart work to see if the risk is worth the reward. If not, we will sit back and watch the close.
If you do not hear from us, we will be back Sunday night with the Weekly Wrap and Monday morning with the Daily. Until then, have a great weekend everyone!