4/5/2009 9:04:16 AM
This week we'll take a "NEW" look at YHOO...
By "NEW" I mean that we'll be showing you full screen shots of our positions (instead of stand alone charts).
This is my screen as I use it. It shows daily, weekly and monthly views and a technical indicator as I use them to set up my trades.
In addition, for each trade, we'll give you a relatively conservative 'option' play focused on doubling your money.
And finally, if you're interested and participating in our Premier Service, we're including a new Market Chat - Chat Room, where I'll be available on a weekly basis to answer your questions. This service on it's own is available for $49/month - but included in our Premier Service for $69.95/month.
If you're already a Premier Subscriber, you will be receiving a communication on how to sign up and when our next session will be. If you would like to subscribe to Market Chat let us know and we'll send you a link. If you would like to subscribe to the Premier Service and get my Daily Stock Barometer, QQQ/Rydex Trader, Explosive Stock Alert, Stock Options Speculator, & Market Chat - 147.85 in monthly services for only $69.95/month (That's 50% off). Here's the link to sign up: http://bmb.goemerchant.com/cart/cart.aspx?ST=buy&Action=add&Merchant=stockbarometer&ItemNumber=009
Want to save an additional 20%? Then subscribe to the annual service for only $669/year. That works out to $55.75/month - or roughly two months free! Here's the link: http://bmb.goemerchant.com/cart/cart.aspx?ST=buy&Action=add&Merchant=stockbarometer&ItemNumber=029
Market Chat will be available at least weekly for at least an hour with sessions normally on the weekend or evenings. It's a no holds barred look at the financial markets. Want to talk about a current position? Want to talk about where the market is going? Have a question about something I wrote about? Want to discuss other service writers - I have no problem telling you the truth behind some newsletter writers & services! This is an education you can't afford to pass up.
No other service offers anything similar and makes this link between writing and feedback!!!
Again, email us if you're interested in subscribing to this service as a stand alone service for $49/month. Sign up as a Premier Subscriber and it's included in the package of subscriptions.
OK, back to this week's trade set up - YHOO.
Here's my trade screen.
I prefer one screen that covers what I need (as opposed to a multi screen set up) as I travel a lot and periodically only have a laptop (or two) to use. And I'm not a day trader - although I may switch to a shorter term view & use a 5-RSI to set up the short term entry. I also have a list of indicators on the left that I can switch to to look for short term timing clues. I'll cover that more detail later.
YHOO is a nice stock as it lines up very well with market sentiment indicators (bottom right screen). I've tied in some of the key signals with past activity. It's neat to see some of this stuff line up. The question is, what would you do right now?
Since the indicators are not clearly at a key reversal level, but I am bullish on the markets but expecting some short term chop - I would set up for a trend trade here. To set up a trend trade, you move to the weekly chart, establish a trend line, buy and remain long as long as the stock remains above the trend line on a weekly basis.
What to use as a trend line? Technically, I prefer to use the 10-week moving average. However, you can use a straight line - but the 10 week tends to movemore in conjunction with the movement of the stock and will tend to get you out earlier and protect more of your profits.
So that's it on the stock trade. Let me know if you have any questions...
On to the options trade - if you trade options, a bull call spread is a good trade to match a longer term trend trade - whereas your goal is a 100% return from the options trade - with limited risk (the value of the options). Here you go:
Well, I hope you enjoyed this week's article and I look forward to talking to some of you next weekend...