Your Almost Daily Bit of Wall Street Wit & Wisdom

be prepared

h/t John Lee Post

“Over prepare.  Do the work with intensity and focus – it’s that attitude that starts attracting people/opportunities.  You start believing in yourself.  You start accomplishing things you weren’t supposed to accomplish.”
— Ian Cassel, @iancassel

I was not a Boy Scout, but I believe they’ve got a good motto, “Be Prepared.”

You should have a complete game plan for each trade.  You know what to do if you’re right and what to do if you’re wrong.

You are in a state of readiness so that surprises don’t surprise you.  Negative surprises won’t take you out.  You’ll be there to reap the rewards when positive surprises come your way.

Have a great weekend!

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

gratitude

h/t Getty Images

“Start every morning with some form of gratitude.  The human mind is incapable of being grateful and angry at the same time.  Especially for traders, focus on gratitude and you’ll be less angry, frustrated, etc. during the day. Always keep a strong and clear mind.”
— Joseph Fahmy, @jfahmy

Live each day with an attitude of gratitude.

Have a very Happy and Healthy Thanksgiving!

All the best,

Steve

Superleverage Power on Display

DIS chart

Chart by Steven Sarnoff h/t stockcharts.com

This morning, as Disney shares topped $150, we sent Options Hotline subscribers a Profit Alert to close their positions (should they so desire).

The Disney (DIS) December $135 call multiplied 5x in 10 days,

triggered 11-04-19 at $3.15,

traded 11-14-19 at $15.80,

+402% in 10 days, on a 13% move in the underlying shares,

with an always known and strictly limited risk!

Subscribe today to stay a step ahead of the crowd.

Best regards,

Steve

Disney Punches Hyperdrive

hyperdrive

h/t @lucasfilm

Options Hotline reco update, FYI:

Our recommended call on Walt Disney Co. (DIS), triggered 11-04-19 at $3.15 with DIS at $132.70, traded 11-13-19 at $15.43 with DIS at $139.90, +390% in a week and a half, on a 13% move in the underlying shares, with an always known and strictly limited risk!

That’s Superleverage Power on Display.

News of significant sign-ups to the just-launched Disney+ streaming service sparked buyers.  Note today’s strong red line on my daily chart below.

DIS chart

Chart by Steven Sarnoff h/t stockcharts.com

I can’t guarantee that all my recos will multiply like this one, but I do my best each week to find option winners for my great subscribers.

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

Best regards,

Steve

 

The Heart of the Matter

chart of coeur mining

Chart by Steven Sarnoff h/t stockcharts.com

Options Hotline reco update, FYI:

Our recommended call on Coeur Mining (CDE) triggered 10-28-19 at $.75, closed 11-12-19 at $1.60, +113% in two weeks, with an always known and strictly limited risk!

That’s Superleverage Power on Display.

I can’t guarantee all my recos will multiply like Coeur, but each week I do my best to find option winners for my great subscribers.

Subscribe to Options Hotline today to vie for fun and profit!

All the best,

Steve

DIS Here

Last Sunday’s Options Hotline headline for our Disney play was, “Content is King.”  This morning, Disney (DIS) shares gapped up 5%, up to next resistance, following yesterday afternoon’s positive earnings report.

This gave Options Hotline subscribers the opportunity to multiply their money on our recommended call options, triggered 11-04-19 at $3.15, traded 11-08-19 at $6.87, +118% in 4 days, with an always known and strictly limited risk!

That is Superleverage Power on Display.

Warren Buffett and Charlie Munger describe Disney as, “…kinda like having an oil field where you pump out all the oil and sell it and then it all seeps back in over seven or eight years.”

I can’t guarantee that all my recos will become multipliers, but I do my best each week to find option winners for you, my great subscribers.

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

Relax and enjoy your weekend!

Best regards,

Steve

Gold at the Apex

Gold price chart

Chart by Steven Sarnoff h/t stockcharts.com

As you can see on our daily candlestick chart, gold shares have been consolidating for three months.

They’ve reached the apex of a large pattern that implies the likelihood, not the certainty, of a continuation higher.

The negative influence of a short-term downtrend came into play today.  The positive influence of a longer-term uptrend awaits just below.

Something’s gonna give.

We’ll see how it breaks out.

A weaker US dollar and the probability of the pattern have us thinking the Midas metal will shine.

Subscribe to Options Hotline today to vie for fun and profit.

Best regards,

Steve

A Point About The Head and Shoulders Pattern

WPM chart

Chart by Steven Sarnoff h/t stockcharts.com

The Head and Shoulders is a well-known price pattern in markets.  Casual observers and amateur traders frequently misinterpret the pattern.  You can see how it gets its name on our chart of Wheaton Precious Metals above.

The point professional chartists understand is that it is not a pattern until the neckline support is broken.  Until then, it is only a potential Head and Shoulders.

Price projections are made from the top of the head to the neckline.  Some would call for WPM to fall to support in the low-$20s.  It may do that, if the neckline is broken.

Broken support often represents new resistance (supply).  Also, smart traders look to take advantage of false signals.  False signals are powerful indicators, but that is a topic for another article.

Support (demand) from the neckline and three consecutive positive red candles tell me WPM may be ready to take off higher and challenge its summer highs.

I see support at $25-$26.  Resistance is at $26.83-$28.50 and $30-$31.

Until proven otherwise by price action, and with the US dollar weakening, call me a Silver Bull.

Subscribe to Options Hotline today to vie for fun and profit.

Be careful and measured in your trading.

Good luck and best regards,

Steve