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Title: Top Down Approach Discussion and how to View BPT - Click on Title

Thanks, Matt -- appreciate it.

Posted by mstaples37 on 25th of Oct 2021 at 05:05 pm

Thanks, Matt -- appreciate it.  Looking forward to seeing those things you've been working on!

Steve,  how does one access

Posted by bharvey96 on 30th of Sep 2020 at 01:35 pm

Steve,  how does one access the "Ciovacco Historical Perspective Charts?"  I would imagine you need to be a client?

He puts out a weekly

Posted by steve on 30th of Sep 2020 at 01:41 pm

He puts out a weekly video via Twitter on Friday Night

Hi Matt/steve, is today highly

Posted by kevindeng0727 on 16th of Jun 2020 at 09:18 am

Hi Matt/steve, is today highly likely to be a trend day?

Spy LEAPS I  don't have much

Posted by focus175 on 23rd of Oct 2021 at 01:19 pm

Spy LEAPS

I  don't have much experience with options other then doing  basic buy call/put options when the Spy System triggers, but I had the idea to look at LEAPs for Spy, with the purpose of buying when we are in an uptrend, the S&P corrects say 10% or so and the Spy System has triggered. The reason for a LEAP would be then I can hold for a longer move where with buying a few months out there's obviously the time factor decay issue.  The thought is to still sell it for a profit a few months after buying. Curious if anyone else buys LEAPS on indexes, and how much time do you have before time decay starts taking much effect?

I do a somewhat similar

Posted by mitchell on 25th of Oct 2021 at 09:40 am

I do a somewhat similar strategy w/ 3-6 mos out calls, but Ive learned to not just 'buy and hold' options; must play the cycles. I always remind myself the other side of an options contract is typ an algo, so have conviction. Paper trade your strategy first...

I trade options often, though

Posted by jj4376jc on 25th of Oct 2021 at 09:28 am

I trade options often, though I don't trade LEAPs. If you are considering trading options based on Matt's systems, or some other system that is fairly short term in duration, I would recommend shorter term contracts. As short as 2 weeks to maybe 3 months out. My favorite type trades are Calendar spreads and Diagonal Spreads. Before doing any of that be sure you take the time to understand the effects of volatility on options. As an example if you buy calls after a quick drop in price of the market, you could be paying a large premium to intrinsic value simply for the price of volatility. IMHO, that is the best time to sell options, not buy. When volatility begins to drop, the price of the option will decrease, all else being equal. Sorry if you knew all this already, I just get nervous when the fist sentence is "I  don't have much experience with options", LOL. Read lots of books, and make a few practice trades before using real cash. Just my two cents.

Very well stated.

Posted by bverse on 25th of Oct 2021 at 10:11 am

Very well stated.

One thing you can consider

Posted by ruscitti on 24th of Oct 2021 at 05:32 pm

One thing you can consider is to sell a higher strike call against your long call position.  That helps a little with time decay, particularly over a long period. With a long call/ short higher strike call position, you can also consider periodically trading in and out of the sold call position to further enhance your performance.  I've done that with shorter term options (I have never traded LEAPs), but I can't think why this wouldn't work with LEAPs.  Bid/offer spread would probably be a consideration.  If LEAPs were less liquid, trading in and out would be more expensive.  The nice thing about this strategy is that you can employ it even in tax deferred accounts (401-k/IRAs).

Algo! Algo! Which way will

Posted by profmel on 22nd of Oct 2021 at 03:46 pm

Algo! Algo! Which way will you go?

BOIL bubbling up.

Posted by lsherrer on 22nd of Oct 2021 at 02:10 pm

BOIL bubbling up.

"Double, double toil and trouble;

Posted by 24kau on 22nd of Oct 2021 at 02:13 pm

"Double, double toil and trouble; Fire burn and caldron bubble."

Sorry, couldn't resist, it's the time of year

RBLX - strong despite selloff in

Posted by timebandit on 22nd of Oct 2021 at 01:21 pm

RBLX - strong despite selloff in the markets

BPT MA Deluxe on the Ribbons - with Bollinger Bands

Posted by matt on 22nd of Oct 2021 at 12:38 pm

As you know for a long time many years, we've shown the MA ribbons on Stockcharts - which are useful for nothing when they are pinching or getting too wide, or when they flip from a bullish to bearish configuration or vice versa.

On Tradestation since we have the BPT MA Deluxe - we place that on the MA ribbons to give it an even more striking visual effect for the last 1.5 years

In Tradestation we watch the BPT MA and how it stretches away from the 4 MA Ribbon - in stockcharts - we only have the ribbon itself

that said - while you can see when the BPT MA Deluxe gets to far away from the MA ribbon, it's also subjective - difficult to quantify it.

I was playing around and placed Bollinger Bands on the BPT MA Deluxe with ribbons and this appears visually to give nice signals - most of the times when you see the BPT MA Deluxe get too stretched away from the MA Ribbon - the BPT MA will also go outside of the Bollinger Bands - thus giving more of an objective signal, here's a couple examples

follow up - nice hard

Posted by matt on 22nd of Oct 2021 at 12:50 pm

follow up - nice hard sell off and now nice hard bounce off that low - question is this a wave B forms lower high etc

however I expected the bounce off those washout intra day lows to be fairly strong - for example using the MA ribbons/BPT MA Deluxe and BB example on a 5 min

price you see that BPT MA so far from the ribbons, typically your bounce won't just be some small bear flag- but more of a larger retracement - you can see how the BPT MA was also outside the Bollinger Bands there at the low

one trigger for a long on that is either off a candle or when the BPT MA goes green

ABNB Updated View

Posted by steve on 22nd of Oct 2021 at 12:22 pm

ABNB - Chart Link- broke down to test its 200 day MA

Cycles and Demark

Posted by matt on 22nd of Oct 2021 at 11:58 am

had a sell cycle on the daily - and Demark 13 on the 1/2 day then Armature buying

High Yield corporate

Posted by matt on 22nd of Oct 2021 at 11:43 am

JNK - Chart Link- to me this has been my concern

$SPX - Chart Link- and compares it to the SPX

the two generally are highly highly correlated to one another - that big divergence is concerning 

$VVIX fyi. Won't cross 110

Posted by timebandit on 22nd of Oct 2021 at 11:40 am

$VVIX fyi. Won't cross 110 unless this selling is sustained today. Remains to be seen. UPDATE: Was just seen: $VVIX at 110.67. A buy program this afternoon could negate that, of course

DIS follow up

Posted by matt on 22nd of Oct 2021 at 11:30 am

DIS - Chart Link- trying this time

DIS - Chart Link-

C'mon you can do it,

Posted by timebandit on 22nd of Oct 2021 at 11:41 am

C'mon you can do it, DIS. Let's see some follow through

As you might expect, $VIX

Posted by timebandit on 22nd of Oct 2021 at 11:29 am

As you might expect, $VIX broke out of wedge on the hourly

Posted by profmel on 22nd of Oct 2021 at 11:28 am

SPX 60 min

Posted by matt on 22nd of Oct 2021 at 11:24 am

$SPX - Chart Link- see chart

Sell programs 

Posted by steve on 22nd of Oct 2021 at 11:22 am

Sell programs 

DIS at the support line

Posted by timebandit on 22nd of Oct 2021 at 11:15 am

DIS at the support line - 30-minute snapshot

$NYAD has been pretty strong

Posted by timebandit on 22nd of Oct 2021 at 10:44 am

$NYAD has been pretty strong today. $NAAD on the other hand broke down out of the coil and is still below after a small bounce. 15-minute snapshots

EEM - Bought on yesterday's gap

Posted by timebandit on 22nd of Oct 2021 at 10:32 am

EEM - Bought on yesterday's gap down, which happened conveniently after Matt mentioned it in Wednesday's newsletter. Nice so far

Z - Weekly .... Nice

Posted by mla127 on 22nd of Oct 2021 at 10:26 am

Z - Weekly .... Nice recovery on this week's announcement ... 

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