August 17, 2017

Archives for May 2008

Overbought As Important Economic Data Nears

The market surged today and has pushed the market stalwarts that make up the Dow and S&P into an “overbought” to “very overbought” state. Typically this type of reading means that a short-term reprieve is near. My hope is that the payroll report that is due out tomorrow pleases Wall Street and pushes the futures higher at the open. This will most likely cause a gap and would push the Dow into a short-term extreme. The RSI Wilder (2) for the Dow (DIA) is currently 92 which is slightly below a short-term extreme. I really do not have much to say at this junctue. Tomorrow cuold present some interesting opportunities for our strategies. As always I will let you (subscribers) know if and when a trade is placed. Have a great … [Read more...]

Overbought As Important Economic Data Nears

The market surged today and has pushed the market stalwarts that make up the Dow and S&P into an “overbought” to “very overbought” state. Typically this type of reading means that a short-term reprieve is near. My hope is that the payroll report that is due out tomorrow pleases Wall Street and pushes the futures higher at the open. This will most likely cause a gap and would push the Dow into a short-term extreme. The RSI Wilder (2) for the Dow (DIA) is currently 92 which is slightly below a short-term extreme. I really do not have much to say at this junctue. Tomorrow cuold present some interesting opportunities for our strategies. As always I will let you (subscribers) know if and when a trade is placed. Have a great … [Read more...]

Performance Page

Performance is the sole factor on which all investment strategies should be judged. Furthermore, an investment strategy is successful only if it has the ability to consistently outperform the market over the long-term. Unfortunately, those particular types of strategies are few and far between. My approach is to present subscribers with several simple and disciplined approaches to options trading which have resulted in consistent success over the long-term. The performance speaks for itself. Performance Verified By Collective2.com ETF Extremes Options Strategy * There have been many emails directed towards the lack of trading in 2009. I decided to take of leave of absence from the strategy due to personal family … [Read more...]

Importance of Position-Sizing

The Importance of Position-Sizing How much should I allocate to each trade? This frequently asked question lacks definitive answers. Why? The answer is quite simple; as investors, we all have a different set of goals. There are just too many variables out there (age, income, retirement goals, spending habits, etc.) to give a universal answer to the question. Options brokers allow you, the investor, the flexibility to allocate your account by specified dollar amount, specified quantity of contracts, percentage of available buying power, etc. It is your responsibility to figure out what works with your risk tolerance and investment goals. This brings me to the important and rarely covered topic of Position-Sizing. Too many investor, … [Read more...]

Performance speaks for itself

I had my first loss of the year in the ETF Extremes strategy. I should probably say that  it was only the second trade of the year, but even so, the strategy is still up 7.5% for the year. My performance goal for the year in both strategies is 30% - 50%. The market moved just high enough to hit my stop-loss this morning, so I was unable to take advantage of the move lower after the fed announcement. The market could have easily interpreted the data differently, in which case the stop-loss woud have proved effective, but just the opposite occurred. Losing trades are a definite. It is how they are managed over the long-term that proves the success of a strategy and I think I have shown over the past few years that I have managed the … [Read more...]