MTM Options Trader Newsletter - Technical Analysis and Indicators to Gain Edge

This Week in the Market The market retreated on Friday putting some bullish doubts into the minds of many investors and traders. Could this be the start of a retracement for more than a few days? Stay tuned. The major indexes have been socially distancing themselves from the major moving averages, but the Dow and S&P 500 came into contact with their 50-day moving averages. Contact tracing may be the next step. On a serious note, if that level fails to hold, there may be more downside on the horizon. Implied volatility levels, meaning option prices, have spiked to levels not seen in a couple of months. Time to sell some bearish premium? Monday could give you a better feel of where the market plans to go. Even if you don't have a position on GameStop or AMC Entertainment, it will be interesting to see how these stocks play out another week. Earnings announcements remain on the slate this week with Alphabet, Amazon and Alibaba expected to release figures, just to name a few. In addition, there are several economic reports being released this week, including the latest jobs figure on Friday before the open. Have a great and healthy week and remember there is never any shame in sitting on your hands!

Feb 4: Jobless Claims Feb 4: Productivity and Labor Feb 4: Factory Orders Feb 5: Unemployment Feb 5: Trade Deficit Feb 5: Consumer Credit Read Our Blog

Technical Analysis and Indicators to Gain Edge Technical analysis is using history to forecast the onset of a trend or determine when a trend is nearing an end. Technical tools and indicators are also used to improve entry and exit levels. Fundamentals, or the forces of supply and demand, earnings, inflation, weather etc., move markets. Technics are most useful when fundamental data are scarce. Moving Average Cross A a simple moving average (SMA) is often the first technical indicator novice traders/investors use to enter and exit trades. The most popular SMAs are the 50- and 200-day. Professional stock traders, fund managers and investors use these 2 averages as benchmarks for long-term positions. The media refer to these MAs Continue Reading ... MTM Watchlist Here are several items we will be talking about in group coaching class this week: AAPL – After gapping lower this week on earnings and moving even lower on Friday, the stock may be ready to reverse provided the market does not drop. Bull puts will be discussed as well as directional butterfly spreads. GS – The stock moved lower again this week as we constructed a put calendar in class. Now it seems the stock may have found a bottom. Potential neutral and bullish calendars will be considered. PLUG – The stock has potential support around $60 and potential resistance around $70. Out-of-the-money credit spreads and neutral calendars and iron condors will be modeled out.

The strategies in this newsletter are for educational and informative purposes only. All information disclosed in this newsletter should not be considered complete in its entirety. Market Taker Mentoring, Inc. will not be held responsible for changes, oversights, errors or omissions. Dates, prices, news and other information may not be accurate. Please verify all information before trading. You alone are responsible for your own investment decisions. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD), which can be obtained from your broker; by calling (888) OPTIONS; or from The Options Clearing Corp., 125 S. Franklin St., Suite 1200, Chicago, IL 60606. No statement in this newsletter is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Copyright Market Taker Mentoring, Inc. 2008 - 2021. All rights reserved. Reproducing or redistributing this content is a violation of federal law.

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