As many of you more experienced BPT's may know the
"professional" traders will oftentimes run the price up past a
major resistance line to run the shorts. We place our shorts at
resistance but they wait till the price exceeds and THEN short. I
can't tell you how many times I have seen this. Just when the
regular guys like us are going long thinking we have a breakout the
market reverses down.
I am not saying I know what will happen today because these
kinds of moves often run a few days so I would not short major
anyway except for a tomorrow morning scalp.
remember today will likely play out like the standard trend
days, see my post from this morning and posts from the past, they
all behave in a similar way, look for some divergence later in the
afternoon and watch the 60 Stochastic, generally stays above 80%
either the entire day, or until the last hr. MACD will
eventually recycle back to zero and price back to the 50 SMA by the
afternoon.
I hate these kind days, screws up a lot of charts, and of course
it's Friday.
One thing I am watching however are the weekly 140 SPY call
options that expire today, they are trading for 7 - 8 cents.
As long as SPY closes below 140 today, those will expire
worthless, I may sell some naked calls on those to get the
premium, I won't hold if SPY closes above 140.
winter39-
regarding your question for a book recc on Options, I have only
looked at a couple before, so I might not be the best source.
Zach or some others here might be able to point you to some
more resources as they trade options more than I do.
First off try Investopedia, it's a free resource.
as far as books, I've looked at "McMillan on Options" and "Sure
Thing Options Trading" there were OK but I can't say if they were
better than other books on options
I may short a little of either SPY or IYT as a hedge, based on
Matt's patented 5 min chart w/ the 60 period stochastics (if over
80% all day). As Matt mentioned, usually there's a final push
higher around 2 or 3 p.m. So, I will be waiting until then
and see.
Shorting SPX here?
Posted by tomW1 on 3rd of Aug 2012 at 11:26 am
As many of you more experienced BPT's may know the "professional" traders will oftentimes run the price up past a major resistance line to run the shorts. We place our shorts at resistance but they wait till the price exceeds and THEN short. I can't tell you how many times I have seen this. Just when the regular guys like us are going long thinking we have a breakout the market reverses down.
I am not saying I know what will happen today because these kinds of moves often run a few days so I would not short major anyway except for a tomorrow morning scalp.
Anyone else relate to what I'm saying?
remember today will likely play
Posted by matt on 3rd of Aug 2012 at 11:48 am
remember today will likely play out like the standard trend days, see my post from this morning and posts from the past, they all behave in a similar way, look for some divergence later in the afternoon and watch the 60 Stochastic, generally stays above 80% either the entire day, or until the last hr. MACD will eventually recycle back to zero and price back to the 50 SMA by the afternoon.
I hate these kind days, screws up a lot of charts, and of course it's Friday.
One thing I am watching however are the weekly 140 SPY call options that expire today, they are trading for 7 - 8 cents. As long as SPY closes below 140 today, those will expire worthless, I may sell some naked calls on those to get the premium, I won't hold if SPY closes above 140.
Options
Posted by winter39 on 3rd of Aug 2012 at 12:43 pm
Hi Matt,
Could you please recommend a good and well written book or DVD
for learning about trading options for a beginner.
Thanks much. and for all your fine work.
winter39- regarding your question for a
Posted by matt on 3rd of Aug 2012 at 02:25 pm
winter39- regarding your question for a book recc on Options, I have only looked at a couple before, so I might not be the best source. Zach or some others here might be able to point you to some more resources as they trade options more than I do.
First off try Investopedia, it's a free resource.
as far as books, I've looked at "McMillan on Options" and "Sure Thing Options Trading" there were OK but I can't say if they were better than other books on options
Free source for Options
Posted by winter39 on 22nd of Aug 2012 at 05:28 am
Thanks much
This feels like short covering
Posted by darnelds on 3rd of Aug 2012 at 12:01 pm
This feels like short covering rally.
yes
Posted by law6 on 3rd of Aug 2012 at 12:21 pm
all night could only find one stock that looked good and it was meli..made me think they would yank it up
plus all the negative news
Into the thin zone above
Posted by kalinm on 3rd of Aug 2012 at 11:47 am
Into the thin zone above 1386 pivot, clearing downtrend resistance....
I may short a little
Posted by frtaylor on 3rd of Aug 2012 at 11:45 am
I may short a little of either SPY or IYT as a hedge, based on Matt's patented 5 min chart w/ the 60 period stochastics (if over 80% all day). As Matt mentioned, usually there's a final push higher around 2 or 3 p.m. So, I will be waiting until then and see.
I've layered in a bit of shorting here
Posted by gregrowe on 3rd of Aug 2012 at 11:39 am