The Volatility Pendulum
-- Market Bites --
Tuesday, 12th January, 2016
The volatility pendulum was certainly in true motion for the stock market yesterday, particularly with the Dow Jones Industrial Average (DJIA) exploring a range of nearly 230 points both sides of breakeven, which finally decided to settle on the positive side before closing.
This would certainly have provided ample opportunities for traders who are positioned to take advantage of these situations --quick purchase at the bottom and then exit on the way back up – the option trader should have been able to also profit from this situation……”small profits are always better then big-losses”.
This pendulum swinging is very much on-the-cards again today, with China setting a steady rate for its currency for the third day in a row which is likely to fail in denting investor concerns about officials' grip on the economy.
having said that, traders are beginning to shrug off the fear of the China sell-off, and the continued drop in oil prices – and are now turning to the more positive side of the market – earnings season lift-off.
Alcoa Inc (NYSE:AA) has already starting the earnings rolling with an unofficial kickoff, and as expected beat earnings but missed on revenue – tough times for Alcoa.
This week will also see a handful of financial names report-- including JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC).
Monster Beverage Corporation (NASDAQ:MNST) will hold an analyst meeting today and it is expected that some good things will come from this – particularly about European sales. Stock Options Made Easy has already recommended an option trade to their members for this event.
Another recommended option trade is CSX Corporation (NASDAQ:CSX), which will report today. Analysts are definitely very
bullish on this stock.
Plus, later on in the week, blue chip Intel Corporation (NASDAQ:INTC) will unveil its quarterly report – and it is very likely that there will be plenty of good things said about its acquisition of Altera. The move away from the declining world of PCs is a step in the right direction for Intel.
On the economic front the Job Openings and Labor Turnover Survey (JOLTS) will be the main headlines for the day – and should not have any great impact on the market movement.
So, it is back to a case of “ride with the flow of the volatility pendulum”.
Best of Trading,
Director of Stock Options Made Easy
Profit from Trading Options!
INTRODUCING THE “CUT-TO-THE-CHASE” TRADER MEMBERSHIP
Enjoy the “CUT-TO-THE-CHASE” TRADER MEMBERSHIP which is perfect for the very short-term active and agile stock trader of options.
Cut-to-the-Chase Members receive a minimum of fifteen (15) recommendations a month, which are short and concise – outlining the reason for the option trade. Remember these are the minimums!
Other benefits are:-
• Very cheap trades – most below $1.00, many less than $0.50.
• Each recommendation is intended to be a 5-minute read at the most.
• Clear instructions and easy-to-execute trades are included.
• Very Short holding periods – anywhere from one (1) day to a month.
• Target potential gains of 60 to 100% (or more) on every trade.
This is perfect for the very short-term active trader at the low price of $79/Month.
JOIN TODAY …..CLICK HERE…..
Profit from a big move in underlying stocks with options!
Become a part of the “ACTIVE TRADER MEMBERSHIP”.
Active Trader Members receive a minimum of ten (10) real-time recommendations a month, which includes the four (4) trades provided for the Armchair Trader Membership plus an extra minimum of six (6) per month. Remember these are the minimums!
Check out the other benefits by becoming a member.
This is perfect for the short-term active stock trader ready to try options trading. All for the low price of $69/Month.
JOIN TODAY …..CLICK HERE…..
"Success is simple. Do what's right, the right way, at the right time."
Option Tip for your Success!
Legal Notices and Disclaimers
Options traders are not successful because they win.
Options traders win because they are successful.