MomentumOptionsTrading.com Midday Update for 4/28/14
Trading Range Continues/ Profit Alert (RMBS)/ 2 New Trades (APOL, POT)!!!
We spent a lot of time this weekend thinking about trading ranges and we wanted to get our thoughts out in last night’s Weekly Wrap and this morning’s Daily because it is important.
When investors look at today’s current market action or listen to the talking heads, their assumption is that the current environment is terrible and the market is headed lower following last year’s tremendous gains.
Truth is, the market is is mixed coming into the week with Tech and small-caps slightly lower. After nearly 4 months, the market has gone nowhere. However, headlines are made on pullbacks or when momentum stocks start to slide.
We mentioned momentum works both ways and that there is just as much money to make on market corrections as there is when the market is going higher.
With trading ranges, the goal to play support and resistance until there is a next clear trend. Following a nice pop at the open, the market is mixed as we head into the final hours of trading.
The Dow is up 12 points to 16,373 while the S&P 500 is off 6 ticks to 1,857. The Nasdaq is declining 50 points to 4,025 and the Russell 2000 is down 13 points to 1,109.
We have a Profit Alert on a call option trade that made is 33% as we have now closed 7-straight winning trades. We also have 2 New Trades we are getting into! Subscribers, check the Members Area for the updates!