May Day or Mayday?

S&P 500 chart

Chart by Steven Sarnoff, h/t stockcharts.com

Stocks rebounded throughout the month of April.  The month ended with the market reaching a natural technical retracement level.  May Day not only started the new month, but May may see selling pick up to drive price lower over the weeks ahead.

Former support (demand) often represents new resistance (supply).  You can see on my weekly chart of the S&P 500 ETF (SPY), that price backed down after encountering the negative influence of a line of average price movement.

The character of the behavior of market price movement shows sellers regaining the edge.

Don’t be surprised to see the March lows taken out.

Subscribe to Options Hotline, now in our 31st year of publication, today to vie for fun and profit.

Stay safe.

Best regards,

Steve

 

Resistance

bear catching salmon

Thomas Mangelsen’s iconic photo h/t mangelsen.com

SUBSCRIBER NOTE: Options Hotline monthly broadcast goes out after the close today

Former support (demand) often represents new resistance (supply).  April’s rebound brought the stock market right to technical resistance. 

A turn lower here indicates a change in the short-term balance of power.

Sign up for Options Hotline today to see how our subscribers vie for fun and profit over the weeks ahead.

Best regards,

Steve

MU Shoo

Micron chart

Chart by Steven Sarnoff, h/t stockcharts.com

As you can see on our daily candlestick chart above, Micron (MU) shares look ready to leave their rally and head south.

The historic panic plunge in oil may grab the headlines, but it’s Tech shares that look terrible. 

The struggle is real, as Wall Street darlings like MU fade under the negative influence of a down trend.

We’re watching for a big test of underlying support (demand) in the low-$30s.  The negative character of the behavior of price movement is depicted by the appearance of consecutive black candle lines right at technical resistance (supply).

This indicates the likelihood, but not the certainty, of lower prices down the road.

Subscribe to Options Hotline today to stay a step ahead of the crowd as you vie for fun and profit.

Best regards,

Steve

h is for holy $#*!

Micron stock chart

Chart by Steven Sarnoff h/t stockcharts.com

Options Hotline reco update, FYI: +35% in a single session on our Micron puts!

Sensible speculators seek to buy options that will move from “out-of-the-money” to “in-the-money.”  That’s where the greatest gains are made and that’s what our most recent recommendation (see 03-31-20 Options Hotline) did today.

The Micron June $40 put triggered at $3.75 and subsequently traded as high as $5.05, +35% in a single session, with an always known and strictly limited risk!

As you can see on my daily candlestick chart above, Micron, appears to be tracing out a potential “h” pattern. That’s where price has a sharp decline, followed by a bounce that rolls over and points to a likely test of the recent lows.  This bearish price pattern closely resembles a lower case “h.”  It’s counterpart is the bullish “y” pattern.

We recommended puts on Micron, because the character of the behavior of MU’s share price turned negative at resistance (supply).  We are looking for a move toward secondary support (demand) in the low-$30s.  The price action moving forward will tell us a lot about who the stronger force (buyers or sellers) really is.

I can’t guarantee all my recos will get triggered on the low or go on to reach multiplier status, but I do promise to continue to do my best to find options winners for my great subscribers.

If this is the kind of options action you are looking for, subscribe today to stay a step ahead of the crowd.

Best regards,

Steve

That’s Gold, Jerry! Gold!

The Midas metal is poised to do well, as central banks and sovereign nations open up the monetary spigots to full.  The classic Seinfeld moment above came to mind.

As you can see on my daily candlestick chart below, gold has roared back from a test of the positive influence of its longer-term moving average line.  Recent forced selling was met by demand.  That is shown by the long and strong red candle lines.

gold chart

Chart by Steven Sarnoff, h/t stockcharts.com

Neel Kashkari, Minneapolis Fed head, whose name reminds me of “cash and carry” futures trades, who gained fame/infamy for his role in the bailout from the 2007-2009 financial crisis, said the quiet part out loud near the conclusion of his segment on 60 Minutes this past Sunday.

Scott Pelley: To the person who is about to grab their car keys and go to the ATM and take out $3,000, you say what?

Neel Kashkari: You don’t need to. Your ATM is safe. Your banks are safe. There’s enough cash in the financial system. And there’s an infinite amount of cash at the Federal Reserve. We will do whatever we need to do to make sure that there’s enough cash in the banking system.

Cue the flight to gold.

Stay well and safe.

Best regards,

Steve

Keeping a Steady Hand

steady ship in rough sea

h/t vantageasia.com

Options Hotline Update, today’s new highs, FYI:

+1,036% on TLT puts in two weeks and

+1,033% on QQQ puts in two months!

Strong sell-offs in both stocks and bonds have sent our recommended option plays soaring.

The TLT September $140 put (see 03-01-20 Options Hotline), triggered 03-03-20 at $1.25, traded 03-18-20 at $14.20.

The QQQ March $215 put (see 01-12-20 Options Hotline), triggered 01-13-20 at $4.29, traded 03-18-20 at $48.60…

..with an always known and strictly limited risk!

That is the Superleverage power of my method on display.

I can’t guarantee that all my recos will multiply like these two, but I do promise to do my best to find options winners for you.

Now in our 31st year of publication, we keep a steady hand on the tiller to help you navigate rough and uncertain market conditions.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Stay safe and take care.

Best regards,

Steve

Our Put Answers the Call

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

Multiplying Nearly 11x in 2 Months!

That’s the Superleverage Power of our Method on Display

+995% in just over 2 months on our recommended QQQ put, with an always known and strictly limited risk!

Another historically poor day for the stock market was not too shabby for Options Hotline subscribers.  Our recommended put option put on quite a performance, providing our readers with protection and profits.

You can see the market’s downside acceleration on my daily chart above.

Triggered 01-13-20 at $4.29 (see 01-12-20 Options Hotline),

the QQQ March $215 put traded 03-16-20 at $46.99, +995%!

I can’t guarantee that all my recos will multiply like the Qs, but I do promise to do my best to find options winners for you.

Now in our 31st year of publication, we keep a steady hand on the tiller to help you navigate rough and uncertain market conditions.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Take care.

Best regards,

Steve

The Power of Puts

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

+787% in 2 months on our recommended QQQ put, with an always known and strictly limited risk!

On January 12th, Options Hotline subscribers received my email bulletin headed “Puts for Protection.”  As you can see on my weekly candlestick chart above, the Nasdaq-100 index ETF was heading higher.  I saw signs of a turning period on my daily chart and recommended our readers use the Superleverage power of put options to position for protection and profit.

Techs were trounced again today, but our recommended puts are diligently doing their job.

Triggered 01-13-20 at $4.29, the QQQ March $215 put reached an intrinsic value of $38.06 on 03-12-20, +787% multiplying nearly 9x in 2 months,with an always known and strictly limited risk!

I can’t guarantee that all my recos will multiply like the Qs, but I do promise to do my best to find options winners for you.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Good luck tomorrow, Friday the 13th, and stay safe.

Best regards,

Steve

Options Hotline Reco Update, FYI:

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

+439% in less than two months on our recommended QQQ March $215 put, with an always known and strictly limited risk!

Our protective put is performing its prescribed role for our readers.  In today’s session, the Nero Adminstration’s inept response to the coronavirus pandemic, OPEC’s epic oil fail, and absurdly low Treasury yields accompanied an accelerated market slide.

As you can see on my daily candlestick chart above, price has reached potential support from a longer-term moving average.  Today’s candle could be the sign of a turning period for a rebound.  It could also catapult price lower, so we will watch for the message subsequent action sends.

Our recommended put option on the Nasdaq-100 index was triggered in mid-January at $4.29 and traded today at $23.12.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Best regards,

Steve

P.S.  Keep calm and wash your hands.