Open Table (OPEN) Option Trade
After announcing earnings last night, as well as the departure of their current CEO/President, the stock is getting punished today…currently down about 14% on the day. The stock rose almost 400% from the beginning of 2010 to just last week and sports a current P/E of 155. As such the stock certainly was and still […]
Why A Trading Plan Is Essential For Trading Success
Without a clear trading plan no one can make money consistently. A trading plan allows the trader to execute his/her trades in a consistent manner and without letting emotions get in the way. Clear entry points, stop-loss and profit targets are predefined by in the trading plan, allowing the trader to focus on execution […]
Apple (AAPL) Is Setting Up For A Long and A Short Trade
Apple (AAPL) has been making lower highs and lower lows over the past six weeks or so, as noted on the daily chart below. Why is this important? AAPL is one of the most widely held stocks and as such one of the most widely followed companies. Its stock price for the past few years […]
Research In Motion (RIMM) Head & Shoulders Playing-Out
As discussed early morning today in the pre-market morning video (http://steadytrader.wpengine.com/video-2/march/), RIMM is in the progress of playing out a classic head & shoulders pattern. See chart below. The target is just north of $51. Several things make this head & shoulders pattern nice in RIMM. Note the consolidation period around the 200 day moving […]
Critical Juncture Here For The S&P 500 Short Term
We're currently dancing on top of yesterday's open gap. In the Futures that corresponds to just about $1320. We've hit that level twice this morning and keep bouncing, which is to be expected given the bulls' resiliency for two years now. Should we fill this gap however we should be right back near $1320, and […]
Happy Research Sunday
Good morning folks. I'm not yet sure whether I will have enough time to write a weekly newsletter today as the launch of the new website is scheduled for tomorrow. I'm busy like Lizzy trying to wrap things up to be ready for the big launch day tomorrow. I am however starting the day off […]
Please Note The Large Gap In The S&P 500 Futures Below
Yesterday's open gap up was around 13 points. I am noting this one front and center because should we start sliding lower this gap can get filled quickly, which would lead us right back to near the $1300 level on the SPX.
INTEL (INTC) Is Still Looking Good On A Longer Term Basis
A 12month chart on INTC shows us the significance of the $22 level and the longer term narrowing trading range (light blue dotted lines)
The Steady Trader
The Steady Trader One of my brokers just alerted me that the spread between 2yr and 30yr treasury bonds are at an all time high of close to 400 basis points. That led me to look at the spread between 2yr and 10yr bonds: around 280 bps…also very wide. Two Questions; What does […]
An Options Trade Idea For December
We’ve had a good couple of days in the markets, and with immediate-term risk assets being quite oversold, the bounce we are seeing may have further to go. Soon the question will become whether this bounce leads to performance-chasing (and hence a rally) in risk assets by fund managers, or whether the global growth slowdown […]