By Chris Ebert

Candlesticks are a common tool that some stock market traders use to gauge sentiment and emotions in the market. Since emotions affect the reactions of traders, the reactions of those traders can reveal their emotions; and knowing those emotions can give a trader an edge.

Traders who are aware of the predominant emotions in the market can make educated guesses about how the market will perform in the future, albeit not with 100% accuracy, but with enough accuracy to be helpful.

Candlesticks can help traders detect emotions. Understanding those emotions, however, can be confusing. In order to dispel some of the confusion, an analysis of stock options can shed some light on emotions, thereby making candlesticks easier to decipher.

To begin an analysis of stock options covering a broad basket of stocks, it is important to know which types of specific option trades are currently profitable on the S&P 500 as a whole.

Click on chart to enlarge

Click on chart to enlarge

*All strategies involve at-the-money options opened 4 months (112 days) prior to this week’s expiration using an ETF that closely tracks the performance of the S&P 500, such as the SPDR S&P 500 ETF Trust (NYSEARCA:SPY)

You are here – Bull Market Stage 1 – the “lottery fever” Stage.

Options Market Stages

Click on chart to enlarge

On the chart above there are 3 categories of option trades: A, B and C. For this past week, ending July 26, 2014, this is how the trades performed:

  • Covered Call and Naked Put trading are each currently profitable (A+).
    This week’s profit was +3.1%.
  • Long Call and Married Put trading are each currently profitable (B+).
    This week’s profit was +3.0%.
  • Long Straddle and Strangle trading is currently profitable (C+).
    This week’s profit was +0.0%.

 

* All profits are calculated at expiration, as a percentage of the underlying $SPY share price, using options ATM-when-opened 4 months to expiration (e.g.  Profit of $6 per share on a Long Call would represent a 3% profit if $SPY was trading at $200, even if the call premium increased 100%)

Using the chart above, it can be seen that the combination, A+ B+ C+, occurs whenever the stock market environment is (more…)

By Jeff Pierce

AA and CENX showed up on my momentum scans today not because they had big moves, but because the overall strength of their trend is so strong. It’s generally a good thing for the general markets when this sector is doing well and we can often expect the markets to continue to rise. Trends don’t turn on a dime and while in the short term they may be a little overbought these trends can go on for far longer then we can imagine.

AA – with a weekly RSI of 88 this is definitely overheated. A pullback in the $13-14 range should be the perfect area to add to this if you were wanting to buy this stock.

CENX – same deal as above, but look for a pullback to the $14-14.50 range.

aa

cenx djia (more…)

21
Jul

By Jeff Pierce

I really meant to post this update over the weekend so obviously it’s not going to have the impact as this stock spiked over 4% today, but I think there’s more upside in this one to be had. Technically it has a very clear channel forming and it should have no problem getting back to the upper trendline. Low float of 22 million will surely add to the volatility but I think there’s a much better chance of this going over $37 then revisiting $32. The RSI has been behaving bullishly as it oscillates between 80-40.  20% of the float is short so as this moves higher many of those shorts could be forced to cover which again could add to the upside move. Keep your eye on this for follow through after today’s move as this thing could just be getting started.

cbsi

Annual EPS (BNRI)

By Astrology Traders

I want to thank one of our subscribers, for bringing to my attention the latest alert from conspiracy writer Benjamin Fulford-July 7, 2014

Read the full article here

The video presentation of Christine Lagarde in the article is presented as an occult message to the power elite using numerological theories.  In the video she presents the number 7 in multiple date sequences.  In my view the entire presentation is comical and has nothing to do with anything, except to confuse people who follow Fullford.  The purpose was a distraction from the real number sequences that will materialize instead on August 10th with Mars at 8 degrees 23 minutes Scorpio and with Venus transiting the same position in October.   I wrote an article on Easter 2013 illustrating the combinations of number grids that were present in astrological planetary transits that coincided with the October 1929 stock market crash, the attacks on 911, the stock market crash of 2008, bank failures, war and the confiscation of gold.  The numbers 8 with 23 are significant along with the numbers 911.  The number 8 in numerology is know as the number for wealth and 23 is the number for man and his DNA.  The shocking events mentioned above all coincided with planets transiting 8 degrees and 23 minutes of a sign.

George Bush Sr. announced the New World Order for the first time on 9/11/90 and it was on 8/23/11 that gold fell from a high of $1911.  It was on 8/23/01, just 19 days before the collapse of the World Trade Center buildings on 911, when Jupiter was transiting 8 degrees 23 minutes Cancer (Jupiter 8 degrees 23 minutes on 8/23/01) when CIA director George Tenet receives a briefing about Zacarias Moussoui titled “Islamist Extremist learns to Fly”.

Bank Failures, Gold, And Wealth Confiscation

  • Stock market crash October 29, 1929– Uranus 8 degrees 23 minutes Aries.
  • October 1, 2008 Lehman Brothers collapse– Venus (rules assets and money) 8 degrees 23 minutes Scorpio.
  • October 27, 2011 MF Global collapse–Venus 23 degrees 8 minutes Scorpio.
  • August 2, 2012 Knight Capital Group collapses– Uranus 8 degrees 23 minutes Aries.

The next pass of Venus to 8 degrees 23 minutes Scorpio is on October 30, 2014.  I have stressed the potential for volatility and international currency instability beginning near October 7th, 30 days prior to Saturn’s return to 24 degrees Scorpio and the anniversary of the judgement of Peshu Alga mentioned in the Astrology Update: June 1, 2014.

September 18, 2013

The date war with Syria got blocked was on September 18, 2013(more…)