All ATwitter

Latest Options Hotline Reco, +42% In A Single Session

by Steven Sarnoff

This past Sunday, I emailed our great subscribers my Options Hotline bulletin.  As to the market I wrote, “We could see exaggerated swings in both directions…,” and recommended buying the Twitter January $32 call option for $1.90 or less good this week.  As usual, I included my Candlestick chart, info on support, resistance, price objective, and rationale for the reco.

When trading resumed, Trump’s tweets bout his lovely dinner in Argentina with Xi had Financial talking heads and buyers all atwitter.  Bulls ran the market up early on Monday, but reality ensued and stocks started to slip.  Twitter fared well and our entry price was not met.  The low trade in the option was $2.25.   Tuesday saw the option trade up to $3.30, before shares of the global self-expression platform declined with the overall market.  Sellers stepped up and buyers stood aside.  I only consider a recommendation triggered if it trades at or below our recommended price during the week.

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A Step Ahead, Covering Our XLF Play

Grabbing Great Gains Before Financials Fall

by Steven Sarnoff

Japanese Candlestick charts are a superior way to depict market price movement, because they vividly depict and reveal the human behavior (buying and selling) that drives price direction.  They often send up early warning signs of coming turns in price.  The chart is never wrong, only the analysis.

On a day when the Financial sector took it on the chin and fell hard, our readers are glad they were able to grab their gains (+82% in a little over a month) before many market participants felt the pain.  With markets closed tomorrow, here’s a walk through how we exited a step ahead of the crowd.

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Debriefing The OptionSellers Debacle

James Courdier h/t YouTube

Risk/Reward Basics Bypassed In Hedge Fund Blowup

by Steven Sarnoff

Last week, news of a hedge fund blowup spread over financial media.  On the wrong side of sharp moves in energy markets, James Courdier, OptionSellers.com money manager, notified his clients that all is lost.  His Tampa-based options firm sent millions of dollars down the drain.  He put out a pathetic, insufferable, ten-minute apology video, placing blame on a “rogue wave,” which capsized their boat.

No.

His blaming a rogue wave is a tidal wave of baloney.

Checking the markets with a glass of wine isn’t piloting the ship properly.  Successful speculation takes knowledge, discipline, courage, and hard work.

Here are a couple key lessons you can glean from the OptionSellers disaster, so you can avoid getting tossed overboard.

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Animal Spirits In The Stock Market

h/t NatGeo

by Steven Sarnoff

Note: The chart within is updated from my original article, which appeared November 21st on other media platforms.

When I was young my father would enjoy telling me a fable, “The Scorpion and The Frog.” With Financial Talking Heads debating whether stocks are still in a bull market or now a bear, I hearken back to that tale.

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Printing Multiplier Profits In 3D

Printing Profits, Not Guns, in 3D

by Steven Sarnoff

OPTIONS HOTLINE Update, FYI: +241% in a month and a half on our recommended 3D ($DDD) calls. This morning, I sent a Profit Alert to our subscribers. 3D Systems Corp. is topping the market’s biggest gainers list, trading sharply higher following a Q2 earnings beat. While shorts are squeezed, as investors and analysts rush in, our great subscribers calmly book their gains. They are seeing their patience pay and their trade triple.

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Our Disney Trade On Ice

How Options Hotline subscribers are feeling this afternoon

by Steven Sarnoff

“It’s kind of fun to do the impossible.” — Walt Disney

OPTIONS HOTLINE Update, FYI: +125% in 2 weeks on less than a 5% move in Disney, with an always known and strictly limited risk!  This morning, ahead of an upcoming quarterly earnings report, I emailed a Profit Alert to my nimble #OptionsHotline subscribers.

They bought our recommended $DIS call at point A. and sold at point B. From 07-23-18 to 08-06-18, $DIS went from $111 to $116 and our option went from $200 to $450.

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Disney Has Spring In Its Step

by Steven Sarnoff

Shares of $DIS, the Walt Disney Co., closed today’s trading session around the high for the day and the week.  I view each day’s trading as a struggle, between buyers and sellers, for control of price direction.  This positive character of the behavior of price movement registered a strong red candle on my daily chart (see below).

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Ready For A Reversal In Gold

by Steven Sarnoff

As we welcome August, we could be on the verge of an august rebound in gold.  My contrarian senses were tingling when Vanguard recently renamed its Precious Metals and Mining Fund to the Vanguard Global Capital Cycles Fund.  This exemplifies gold as an out of favor investment and is a sign the conditions may be right for forming a significant bottom.

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November Returns

november

by Steven Sarnoff

November Returns

We welcome the onset of a new month with stocks seeking to extend their record run.

Analysts often look to past returns for an idea of what to expect going forward. But the well-known disclaimer, “Past results are not indicative of future returns,” is always applicable.

One of my favorite market adages is that “It’s the little exceptions that get you.” So one is well-served to view historical returns with eyes open to alternative outcomes.

The following chart arrived in my Inbox, depicting monthly trends for the Dow Jones Industrial Average over the last 20, 50, and 100 years.

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What’s Going On (In The Market Now)?

whatsgoingon

by Steven Sarnoff

The extended record-setting move up in the venerable S&P 500 is making any self-respecting seller “wanna holler and throw up both my hands,” and many of the weaker shorts are capitulating.  This has my contrarian senses tingling.

Let’s have a look at what’s going on in three important markets, stocks, interest rates, and the US dollar.

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