Archive by Author

Equity Oracle: 11/20/14

I hope you can see just how valuable contingent buy orders are for entering into a new position. Last week an alert went out to buy the stock only after it broke out over the resistance line, but that never happened. Instead, the stock pulled back from resistance and is now sitting on support (50-day MA). The hammer candle […]

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Equity Oracle: 11/13/14

Contingent buy orders have worked very well for us in the past because this strategy allows us to be more reactive to the signals therefore eliminating the temptation to forecast price movement on uncertain signals. The other price pattern that has worked well for us in the past has been the Cup & Handle Pattern.

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Options Oracle: 11/13/14

We have had great results with the Hershey Chocolate strategy. This is a regular cycle we’ve exploited for a number of years but this year we are getting into it a little bit earlier. The main reason for us selling this credit put spread is because of the bullish engulfing pattern that showed up yesterday.

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Equity Oracle: 11/08/14

We finally have the green light to get back into NUGT. After nine red weekly candles in a row the buyers are finally back into the stock on extremely high volume. In fact, if you look at the chart (above) you will see that the volume we had this week is the highest we have had in 3 […]

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Options Oracle: 11/08/14

The iShares Gold Trust trades 1/10th the price of GLD making this a cheaper way to add to our gold position. The January 2016 10 calls are trading for around $1.80 making this a great position to hold on to as we look for spreads and credits that will help us pay down the cost of these leaps. […]

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Equity Oracle: 10/30/14

You can see from the weekly candle chart above that the stock is bouncing nicely off of the role-reversal support line, around $10. It’s nice when a stock forms a clear pivot point at a support level because it not only helps us with the entry point, but also helps us with an exit strategy for managing risk.

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Options Oracle: 10/30/14

On October 9th we bought the April 16 Calls in RWM for $2. The price has dropped since but as you can see from the chart the volume is also dropping. This divergence is a very bullish signal which is why I’m suggesting that we add more calls to our position in order to average the cost down […]

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Equity Oracle: 10/23/14

J.C. Penny is trading very close to its 20-year lows and it looks as though the stock is pivoting higher to re-test the 50-day moving average. This is an opportunity for us to get into a long position at a reasonable price. If the stock looks like it is going to close below support then […]

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Options Oracle: 10/23/14

On September 4th we bought the January 2016 230 Puts for $30. The stock dropped shortly after that just as we expected it to do and this allowed us to sell the November 200 Puts for $4.75. The credit we collected helped lower the cost basis of the January Puts to $25.25. Now our goal […]

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Equity Oracle: 10/16/14

This week has been one of the most volatile weeks of the year and investors are having a hard time trying to figure out what to do with their money. Fortunately, we have a plan in place that’s working and it looks as though we are about to set ourselves up in another great trade.

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