Even with all of the selling in the indexes the last month, CRNT and NIHD multi-year highs, those 2 stocks discussed multiple times WELL BEFOREHAND the last several weeks. NIHD was actually discussed in a public post a few weeks ago after first discussing with subscribers. Any one who read those posts could have taken advantage of the PRE-BREAKOUTS, those 2 stocks, and the bullish sector they are in, have been discussed multiple times. They set up beautifully. On August 17 in a post, I clearly stated WELL BEFOREHAND, well before the selling in the indexes emerged, that I was moving to 100% cash, and waiting for the quality setups to re-emerge, and they then did start (I move back into the stock market very slowly) and more of them are showing up. I have discussed very few symbols the last month, so there should have been zero confusion about what I was saying with these 2 stocks. How many times do I need to put out this excellent work before seeing more interest in this website? Running out of time here. My work at this website is accomplished extremely well:
Discussed yesterday for subscribers in the premarket for 11/8:
Once again, my job is to give guidance advice ideas, I believe that work is accomplished extremely well, no matter how little interest there is in it. I believe 100% in my work, I do not care what any opinions claims theories – useless noise – there are all around me with our markets and – generally mindless dumb unfocused slothful lazy incompetent – supposed connected world we have now.
The election was the huge event this week, and the delayed Fed. The stock market has been setting up, as chronicled here the last few weeks – all of this has been discussed in detail – my view of the bull market still being fully intact, my view that the EAs had begun showing up, my view of the Russell needing to and then did lead the way out of the lows, my view that the Russell showed positive divergence to the SPY with the……the #3 EA point/spike low of the #3 wave…….., my view of the positive technical action with the Russell breaking thru the first big……res, my view that more quality setups showing up AND I began to give specific SYMBOLS of things setting up, AND my specific comment of what to do – what specific action to take – into the selling wave two weeks ago:
From 10/23:
If we break to new lows, using those levels discussed yesterday, I am going to start avering in (not averaging down I’ve explained the difference I never average down) to a no fee (commission) Russell ETF, there are a bunch of them out there (SCHA), and put it away. It is a secular bull market.”
And again, I have two approaches, the one I use more often is to buy into the selling waves, there is another approach also, discussed once more last week. This business is 100% about hard work. There is nothing stopping anyone from working hard at this – if you choose to – if you choose to. “Talent” “intelligence” “gut feel” has nothing to do with this. Yesterday, 11/7, was a ……….day, often there is a reaction from that, the volume ……..with any reaction. The 60 minute opening bar, and good close with green volume, that is then when to start believing the follow thru day is likely, on an intraday basis:
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I do my job for this website extremely well:
Now, 11/9: The selling from that res area continuing today 11/9. That res area in SPY clearly drawn in yesterday along with my warning that a counter trend selling wave is likely to begin. I did a put option trade in SPY, that is discussed below, coming in flat the options today:
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I believe 100% in my work:
Thru all of the selling in the indexes there is one stock which I kept discussing and trading, NIHD, discussed 20x, still long 1/2 position from 10/31, the stock is at more multi-year highs today at over 8 premarket, continuing to trail my stop up:
On 10/29 – I’m starting to put together a list of stocks, starting to grow, ones showing RS, accum or uptrends, pre-bkos, one sector showing a lot of strength is telecommunications. If you want some symbols, you’ll let me know. The uptrend in NIHD mentioned numerous times is in there.
From 11/2 – NIHD has been discussed 20x, and even with all of the selling in indexes, since 10/1 THE UPTREND in NIHD discussed 6x. And again a few days ago – “the uptrend in NIHD mentioned numerous times is in there.” So many opportunities for you, 12% trade, sold 1/2, scratch stop other 1/2:
Along with NIHD, I discussed the one sector which is showing me the best RS action, it has become the #1 sector in the market. Soon after NIHD, I gave CRNT as a new symbol, another telecom. Now that stock yesterday blasted out to new multi-year highs. My goal with trading the more quality yet still smaller stocks, not daytraders necessarily, but still take 1/2 profit if I can on the first day. So let it run, or not, after that at least risk is lessened, cash register rung. I sold 1/2 CRNT yesterday way too early at 4.16, trailing up stop. The big arrow in the chart below is when I first discussed CRNT on 10/31, I had been watching it for a while. And even with the move up the last few days, I still waited until yesterday for my specific setup in a stock which I believe is setting up to break out and has a defined supp shelf to use as a SPRING -“pre-bko stock phase 2 near the opening spike low” – and break out it did.
On 10/29 – I’m starting to put together a list of stocks, starting to grow, ones showing RS, accum or uptrends, pre-bkos, one sector showing a lot of strength is telecommunications. If you want some symbols, you’ll let me know. The uptrend in NIHD mentioned numerous times is in there.
On 10/31 CRNT first given, on 11/5 – Mid-terms, the delayed Fed meeting this week. A lot of stuff. My stock list is expanding, discussed telecoms last week, CRNT another one been watching, no position, and 11/7 – The single sector I have been discussing recently has been telecoms, NIHD has been outstanding. CRNT already discussed.
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Yesterday, 11/8, I did a pre-Fed put option trade in the SPY. I am coming in flat today, will not be taking advantage of the overnight selloff. That option trade is chronicled within the chart notes done intraday with the trade in progress:
First, the res clearly drawn in with premarket comments, along with my warning about a likely selloff, with the SPY yesterday:
It was Fed day, was only going for a very short-term trade, most of the discussion on the charts. Was trying to wait for the LOD to be hit, but it was getting too close to Fed and I covered early, it did go below LOD after Fed, but already out:
Hi Scott, I have Stop Loss question with Options.
With stocks the stop loss is straight forward, but with options one can’t just pick a price level of the underlying stock/index on the chart as the option time value keeps changing. How do you handle, keep track of that?
I see your excellent SPY Put trade yesterday actually went against you early on, so how did you know your puts were down less than your 20% loss limit?
For the first part Dave, I’ll do a video about that, yes it is very tricky. One thing is to monitor where the bid/offer range is at certain SPY supp and res points, to see and monitor or write down what the bid/offer is there, to get a feel for the premium change. Also, there are specific instances where I want to use the upcoming Friday expiration with the option, for that specific week, but I usually go out one more week, so the time premium part does not get trashed so quickly. As to the second question, not sure if I understand it completely, because the prices and the bid/offers are updated on the screen. But the puts were very quiet at that point in time, tiny range in SPY, the price only got down to 1.79 from my 1.85 entry. The bid got to 1.78 I believe. Let me know if that is your question, I’ll put it in the video also.
My “second question” was actually just an trading example of the original question. From what I gather you keep a second screen up showing the option bid/ask prices, so that answers my question as to how you stay on top of the option stop loss amount.
SHEN
SHEN was already given to subscribers.