Monday, November 26th Recap
Last Friday we said that we were comfortable saying that we have entered into a bullish trend, and that digestion was VERY constructive. Today we saw an inside day from the SPYs, a small digestion from the prior week's move. All in all, I like what I see - specifically from the market leaders today. It may take a few days for the SPYs and SPX to digest these moves, but for now I like where we stand. SPX retaced about 66% of Friday's move, but still closed above 1400. At this point I would be happy with a retest of 1396 in the near future, but holding 1400 but the end of the week would be preferred.
Even though the market was virtually flat, there were MANY leaders out there today (much of which were on our watch list from yesterday). At this point in the game I suggest searching for your grade "A" setups that you love to trade - because I promise you, they are out there. I closed my Facebook call option today, netting a 200% gain since last Wednesday's entry in the December call option. Once I rolled out of the Facebook position, I began to search the afternoon charts for potential setups leading into tomorrow - charts that have a great risk/reward, but aren't over extended. First I saw the NFLX chart. While the potential reward seemed great, I just couldn't pull the trigger on how it has acted recently. I think this one will take some time, and may require a few non-committed longs to bail out. A little bit later I ran across the FSLR chart, and noticed that it is still in its bullish wedge/cup and handle formation - coiling for a move. I bought a few December call options for FSLR, with a stop around 24.50 or so, with a potential move to atleast 26, possibly 30. I may take a hit early, as it digests today's move, but I think this has the potential to pay off by the end of the week or next week.
Additionally we saw great moves from EBAY, AAPL, ANF, DDD, HD, etc. The market has great setups (as we'll see below), it just takes the time and the patience to wait for your setup!
As always, feel free to contact me if you have any questions or comments. Goodluck trading this week - stay sharp, stay focused, stay passionate.
The ET Team
Even though the market was virtually flat, there were MANY leaders out there today (much of which were on our watch list from yesterday). At this point in the game I suggest searching for your grade "A" setups that you love to trade - because I promise you, they are out there. I closed my Facebook call option today, netting a 200% gain since last Wednesday's entry in the December call option. Once I rolled out of the Facebook position, I began to search the afternoon charts for potential setups leading into tomorrow - charts that have a great risk/reward, but aren't over extended. First I saw the NFLX chart. While the potential reward seemed great, I just couldn't pull the trigger on how it has acted recently. I think this one will take some time, and may require a few non-committed longs to bail out. A little bit later I ran across the FSLR chart, and noticed that it is still in its bullish wedge/cup and handle formation - coiling for a move. I bought a few December call options for FSLR, with a stop around 24.50 or so, with a potential move to atleast 26, possibly 30. I may take a hit early, as it digests today's move, but I think this has the potential to pay off by the end of the week or next week.
Additionally we saw great moves from EBAY, AAPL, ANF, DDD, HD, etc. The market has great setups (as we'll see below), it just takes the time and the patience to wait for your setup!
As always, feel free to contact me if you have any questions or comments. Goodluck trading this week - stay sharp, stay focused, stay passionate.
The ET Team
*Disclosure: Elite Trading is not liable for any personal losses taken on due to the advice and/or suggestions sated within this site. Elite Trading is currently long FSLR via weekly options. I did go long FB via weekly options, but sold at the close. Potential moves I may make in the next 72 hours may be in AAPL, GOOG, FB, FSLR, KORS, XLU.