We have another non-event on Wednesday. The market was digesting both the negative and the positive news at the same time. In my view, there were more bad news than good but the markets closed with a small gain. I will not want to speculate the direction of the markets for now. Let the markets [...]

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Tuesday’s markets did not immediately return to its bullish mode. The Dow was beaten down to a loss of 168 points before closing with a reduced loss of 105 points. Chartwise, the Dow’s bullishness is maintained at this point. All other indexes such as S&P500, Russell 2000, and Nasdaq-100 are showing the similar pattern.
Yes, the [...]

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Monday’s market is a non-event. This is a very normal phenomenon after a breakout. In fact, this is the kind of setups that I expect to see after a strong rally or a crash. Exactly why they happened this way is not clear. I can only speculate that it was due to profit taking. Anyway, [...]

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You have witnessed the final breakout on the Dow and S&P 500. If you have followed my advice earlier, you would have prepared for it. In accordance to my breakout trading plan, Friday’s breakout would have you longed the market already and prepared for the much awaited reward for a safe and sweet profit. If [...]

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<< Basic Option Spread Strategies (Part 3) - Bull Put Spread
Bear Call Spread
Step 1: Sell lower-strike Call option
Step 2: Buy high-strike Call option at the same expiration date
Characteristics
A Vertical Spread, this is a Credit Transaction
Investor Sentiment
Moderate Bearish Strategy (large credit spread):
It’s considered a bearish strategy because you profit if the underlying stock price decreases.
Income, Profit [...]

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