The Market Guys

All of the technical signals are telling us to buy XOM right now. We have a hammer pattern at the end of a down leg, there are four consecutive red candles in a row that tell us there’s a high probability of a green candle on the horizon (stale red light), and we are at […]

This Friday marks expiration day for the August option chain. We are currently holding positions in the following companies; AMEX SPDR Energy Select Index (XLE), The Volatility Index (VIX), Gold ETF (GLD), Carnival Corp. (CCL), Cirrus Logic (CRUS), Diamonds Trust (DIA), Barrick Gold (ABX), Baidu Corp.(BIDU), Catapillar, Inc. (CAT) and Broadcom, Inc. (BRCM).

Broadcom Corp. gapped down three times in the month of July with the most recent gap identified as the exhaustion gap. An exhaustion gap signals the end of a move. These types of gaps are associated with a straight-line advance or decline. In this case it shows up at the end of a straight-line sell […]

It’s been a long time since I last spoke about “The Golden Buy/Write” but I couldn’t help but notice this one today. The term “Golden Buy/Write” is something that I came up with years ago while I was doing a seminar in Stockholm. The investors there wanted to know if there was a way that […]

As you can see from today’s candle chart of BIDU, the stock has gapped up but has stopped right at the major resistance level taken from the highs on August 17th, 2012. A credit call spread is a bearish strategy that allows us to take in a cash credit to our account. The most we […]

This Friday marks expiration day for the July option chain. We are currently holding positions in the following companies; AMEX SPDR Energy Select Index (XLE), The Volatility Index (VIX), Gold ETF (GLD), Carnival Corp. (CCL), Cirrus Logic (CRUS), Diamonds Trust (DIA), and Barrick Gold (ABX).

On May 24th an alert went out to buy the Jan 2015 29.50 Calls on Carnival Corp. (Ticker: CCL). Our purchase price for the calls was $5.80. These leaps are currently trading for $7.50 and it would be easy for us to take our $1.70 (29.3% Profit) and run…BUT… it will be much more profitable […]

The US Dollar made a nice rally after we bought the Leaps on June 14th. My original goal was to turn this into a diagonal calendar spread but the August at-the-money calls don’t have much time premium so it’s best that we just sell the Leaps and take the profit. We bought these calls for […]

Barrick Gold (ABX) has taken a beating over the past six months but I think now is the time to take a long position in ABX. Take a look at the bullish engulfing pattern on the daily candle chart and you can see that this is just one of several signals that are telling us […]

This is a daily candle chart of the Diamonds (DIA). Notice how the highs are getting lower as the price struggles to stay over the 20-day moving average. We are at a critical point right now. If the price closes below the trendline (red line) then we will see an acceleration of the selling activity as […]