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.
“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.
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).
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.
by Steven Sarnoff
It’s been said that trading is like flying an airplane, “Hours of boredom with moments of terror.” Market action may sometimes feel frenetic, but Options Hotline subscribers use a strategic game plan for each trade to smooth turbulence and steadily stay a step ahead of the crowd.
Corporate earnings beats, particularly in the Dow industrials, are propelling panic buying. Central bank monetary largesse and money moving out of bonds (pushing 10-year yields up), along with investor hopes for tax cut legislation is also juicing the market.
I try to tune out the noise and focus on what the character of the behavior of market price movement is saying. Note, in my daily candlestick chart below, the appearance of a “hanging man” followed by a strong negative black candle just as the venerable index is nearing the apex of a bearish rising wedge pattern. This is telling us that buyers are approaching exhaustion and sellers are poised to strike back.
Just a week after running over Ford, Tesla today overtook General Motors for the number one spot among US automakers for market value based on stock market capitalization. Tesla’s drive higher has sparked renewed debate about the concept of value.
Differing opinions make markets. The financial media features many Wall Street analysts flouting Tesla’s share price rise, calling the stock clearly overvalued. Elon Musk, Tesla’s chief executive officer, couldn’t resist schadenfreude by trolling and throwing shade at short sellers with his, “Stormy weather in Shortville…” tweet.
by Steven Sarnoff
I’m not big on promotions, but thought of this one as a salute to Chuck Berry, the progenitor of Rock ‘n’ Roll and to basketball, the sport I love, down to the Sweet 16 of the NCAA tournament.
If anyone you know is interested in subscribing to our service, feel free to pass along this promo.
Attention Traders, Sweet 16 FLASH SALE: 16% Off OPTIONS HOTLINE, Through This Sunday. Enter code SWEET16 to subscribe and receive Steve’s next Option Trading recommendation.
During March Madness, our readers have already seen:
+118% in 1 month on ConocoPhillips
+82% in 9 days on the Russell 2000 index
+98% in 2 days on Citigroup
Today was the worst day of the year for stocks, but not too shabby for OPTIONS HOTLINE subscribers. The Superleverage power of my method was on display, as our recommended Citigroup May $60 put, triggered 03-20-17 at $2.00, traded 03-21-17 at $3.30, +65% in 1 day, on a 3% move in the underlying shares, with an always known and strictly limited risk!
On Sunday, 03-19-17, I emailed my readers, “Professionals have seen the recent sector underperformance and are fading the financials. Some may call that crazy, but it may just end up being crazy like a fox.”
Since today is Pi Day, and we were honored by our math major nephew dropping by the office during his break from university, I decided this was as good a day as any to get back to blogging with a post about how a trader should regard the influence of a famous Italian mathematician from the Middle Ages on today’s markets. Continue reading