Showing posts from February, 2020

WBA Apr 17'20 50 Put

At risk is $243, however, I will close this position if the value of the initial option ($241) goes below 50%. I am a trend trader at heart, getting into a position on a day when the market is selling off is leaving me vulnerable to a snapback in price. We all know, there are many traders who view the market selloff as a great buying opportunity, this current bull market has proven them right so far. The Corona Virus appears to be spreading to other countries outside of China sparking fears of a slowdown. I don't want to get bogged down in the news, as Mark Douglas taught, anything can happen, and I have proven to myself many times that my opinion of what should happen according to current events does not matter.

Have a great week!


Time To Buy, Sell, or Stay On Sideline

S&P 500 resistance of 3,400 will be the next milestone to reach, buying opportunity if your bullish occurs when price retraces back down to SMA 30. A test below SMA 60 would naturally test the commitment of a lot of bulls and embolden bears.

     — The major averages are trading mixed and little changed amid a lack of conviction. Buyers are presumably tired after the strong gains in February, while sellers remain sidelined given the strong tendency in the market to bounce back from any weakness.—In key corporate news, Morgan Stanley (MS 55.03, -1.26, -2.2%) will be acquiring E*Trade (ETFC 56.79, +11.85, +26.4%) for $13 billion in stock. MS was downgraded to Equal Weight from Overweight at Wells Fargo following the news. —Interestingly, investors continue to assume some defensive positioning in bonds (10-yr yield is down four basis points to 1.53%) and gold ($1619.50/ozt, +7.70, +0.5%). The U.S. Dollar Index is up 0.1% to 99.78.—Co…

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