OPTIONSMART MORNING UPDATE: Plunged on profit-taking
September 2nd, 2009 at 8:33 am|
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OPTIONSMART
MORNING UPDATE: Plunged on
profit-taking |
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1. OUTLOOK: ISM Manufacturing Index for August came out better than expected. It marked the first time the reading topped 50 since January 2008. Pending home sales for July climbed 3.2%. Markets tumbled Tuesday, as investors bet that the six-month stock advance has raced ahead of the economic recovery. Online auctioneer eBay said it will sell a large stake in its Skype Internet phone business to a group of investors for $2.75 billion. QQQQ's implied volatility inched higher as investors buy put options to hedge their portfolios. Nevertheless, we believe this pullback won't last long. U.S.futures point to a neutral open.
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2. TRADING OPPORTUNITY: Buy the market on weakness |
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3. OUR FREE MONTHLY TRADING RECOMMENDATION AUTO-TRADABLE
WITH OUR PARTNER
BROKERAGES:
to be published in September.
OUR MOST RECENT FREE TRADE: CSCO
Oct 19/21 Bullish Debit Call
Spread: Bought
@1.45 on 08/13/09 and sold @1.60 on 08/21/09 with
a 10.3% gain in 8
days!
OPEN POSITIONS:
None
HOW TO SET IT UP:
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4. WISDOM NUGGETS: Some traders consider trading as a sort of gambling. Without planning and calculations, they throw money at the market. They should distance themselves from gambling behavior. Why a scientific approach is applicable? Markets echo similar patterns over and over again. It allows identify reliable trends and select good trading vehicles. |
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5. SPECIAL OFFER: n/a Diversify your portfolio by receiving more frequent picks and trading alerts. Subscribe to our paid services!
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