Bull or Bear?

By: Stock Barometer | Sun, Oct 25, 2009
Print Email

10/25/2009 9:40:01 AM

To ensure delivery and prevent this e-mail from being delivered to your bulk mail folder, please add our 'From' e-mail address, info@stockbarometer.com, to your address book or preferred sender list.

The obvious may not be the best path to take...

SOS Timing Indicator

I think the most interestingobservation here is how the advancers have consolidated lower into a buy signal. And while the market can thrust lower here, it would be a terminal move, not the initiation of a large move lower. At least that's my bet. So I would purchase CALLS here ahead of a potentially larger move higher.

Purchasing ahead of the move with options makes sense because as soon as the move is accepted, the price spectrum will change and it won't be so cheap too purchase your CALL Options.

Stock Options Speculator uses the above indicator in the establishing of various options trades and strategies. The indicator has two frames. The top frame shows the Nasdaq Composite and the Nasdaq Advances and Declines. The lower frame shows volatility (candles), the equity put call ratio (red line) and the Trading Index (blue line). The height of the indicators determines if call or put buying strategies are recommended.

Options Trading Ideas

Based on the SOS Timing Indicator or other special market conditions, the above 10 trades are recommended for consideration in your trading plan.

Risk Graphs

The following risk graphs show stock price plotted against potential profitability. They're listed alphabetically.

The Advantage Report - with Angelo Campione
S&P and Nasdaq Market timing advice for only $10.95/month

Angelo Campione's Advantage Credit Spreads
Now only $25/month For a limited Time Only

Using Options to Target Consistent & Conservative Profits!

Closing Bell

We may be a bit premature with our buy signal here, but given the energy built in the market, I would have to take the position that the next magnitude move will be higher, even though in the short term we may get a brief frequency move lower first - I'd use weakness to establish any bullish positions.

What would change my mind? I think this is a critical week ahead in the markets. What happens this week should set up the move for the next month. We do have a 9 month cycle low coming in around the end of November - but I've seen 9 month cycle lows muted in these strong liquidity periods in the past and it looks to be setting up similar again!

For those who want a few more ideas - here are the next 10call option plays to consider:




Stock Barometer

Author: Stock Barometer


Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend.

Our goal is to make you money. We offer you the tools and information to do so and leave it to you, the individual investor, to apply them in the best way possible.

Important Disclosure: Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.

For a complete understanding of the risks associated with trading, see our Risk Disclosure.

Copyright © 2004-2017 Investment Research Group, Inc.
d/b/a www.Stockbarometer.com. All Rights Reserved.

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com