Your Daily Bit of Wall Street Wit & Wisdom

Eisenhower

President Eisenhower’s farewell address

“In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex.  The potential for the disastrous rise of misplaced power exists and will persist.  We must never let the weight of this combination endanger our liberties or democratic processes.  We should take nothing for granted.  Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful goals, so that security and liberty may prosper together.”
— Dwight D. Eisenhower, January 17, 1961

Your Daily Bit of Wall Street Wit & Wisdom

stock market sentiment chart

h/t SentimenTrader, @sentimentrader

“Nothing like price to change sentiment.”
— Helene Meisler, @hmeisler

Measures of investor anxiety/fear and complacency/greed can provide valuable information in your analysis of the current market condition.  View them as a technical tool to add to your weighing of evidence.

The chart above shows pre-market fear reaching levels seen at bottoms in 2002 and 2008.

This morning, Wall Street bulls are set to try for a market bounce before they bounce out to the Hamptons for their annual holiday weekend.

Enjoy yours!

Best regards,

Steve

Let the Chips Fall

Micron stock chart

h/t stockcharts.com

Options Hotline Update, FYI: +140% in 2 months on Micron puts

This morning, financial news was blaring about continued US/China trade tensions pressing Tech stocks to the downside. The move lower in Micron reached our $33 price target (see 03-24-19 Options Hotline) and our readers received an email Profit Alert that we would consider the position closed.

The Micron July $40 put, triggered 03-25-19 at $3.00, traded 05-23-19 at $7.20, +140% in just under 2 months, with an always known and strictly limited risk!

That’s the Superleverage power of our method on display.

You can see on my daily candlestick chart of Micron (MU) above, subsequent to our recommendation MU had a quick decline and rebound.  Shares then settled into a consolidation, before breaking down, over the past few weeks, to our objective.

Over the years I’ve found that patience tends to pay.  If this type of options action is for you, subscribe to Options Hotline today.

Let me know if you have any questions. My email never sleeps.

Best regards,

Steve