October 11, 2017
Inside Trading
TradeWins Publishing

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Look at this screenshot and see if you can guess what two oscillators are displayed at the bottom of the chart.

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Wendy Kirkland




How did an award-winning artist and sculptor, who owns an eclectic gift shop in Historic Biltmore Village, end up an option guru?

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- The need to take immediate control of her financial future brought Wendy to option trading and the leverage it offers.

- Inspired to help other women enjoy the financial security she had found, Wendy launched WomenOptionTraders.com and began giving online classes.

- A natural-born teacher, her following grew quickly and so did requests for an easy-to-understand book on options. So in 2009 Wendy co-authored, with Virginia McCullough, “Option Trading In Your Spare Time—A Guide to Financial Independence for Women”.

- Then, in 2010 a major uprising… online traders, men and women alike, heard that Wendy’s P3 System produced nearly 100% winning trades and they wanted in.

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It’s quite exciting.

OPEC just noted that it expects to see 266 million EVs on the road in just a few years. The International Energy Agency increased its 2030 forecast from 23 million to 58 million. BHP Billiton thinks we’ll see 140 million of them on the road by 2035.

But for that to happen, the industry needs key materials to make the batteries work, including lithium, cobalt and manganese. All three are in a bind with tight supply and a heavy amount of demand. Does this spell market opportunity? You bet.

Next, Lee Gettess gives us his weekly analysis of the S&P and bond markets.

Then, Wendy Kirkland explains how to spot and profit from moving average crossovers.

Last, Andy Chambers offers his Weekly Market Line in the Sand Newsletter.

Enjoy!

Adrienne LaVigne
TradeWins Publishing



 

The Best Way to Make Money in Q4 2017

by TradeWins Publishing

Sometimes, making money is easy.

On July 26, 2017, we mentioned taking a position in the DIA, QQQ, and SPY ETFs, as well as the DIA January 2018 220 calls.

Here’s how they’ve done since then.

- DIA ran from $216 to $227

- QQQ ran from $140 to $147.50

- SPY ran from $242 to $254

- The DIA January 2018 220 calls ran from $3.80 to $9.75.


It’s best to exit each of these now to secure wins, especially with the call options.

In early July 2017, we spoke about the HIMX stock at $7.75. It’s now up to $10.82. Sell the stock here to secure the win. We also mentioned opportunity with the HIMX December 2017 9 calls at 80 cents. It now trades at $2.50. We also spoke about the HIMX January 2018 10 calls, which ran from 67 cents to $1.85.

Sell each of those trades as well.

We’re even doing quite well with the cyber security trades we spoke of.

Are we perfect? Do we get it right all the time? Not at all… But we do our very best to help find rewarding opportunities, as those above. Better yet, we’re looking to launch a daily version of this letter as well to bring you even more, bigger opportunities often.

As for new opportunities, sometimes we simply need to uncover supply-demand stories. Right now, one of the biggest stories in the world is the electric vehicle (EV) boom. Many of the cars run on lithium-ion batteries.

The EV Boom Potential

It’s quite exciting.

OPEC just noted that it expects to see 266 million EVs on the road in just a few years. The International Energy Agency increased its 2030 forecast from 23 million to 58 million. BHP Billiton thinks we’ll see 140 million of them on the road by 2035.

Make Money in Q4 2017

 
 

Lee Gettess' Market Sense

by Lee Gettess

Lee Gettess is a top trader who is excited to bring you his video newsletter. Each week, Lee will share his predictions on what he anticipates from the bond and S&P markets.

Watch Video

 
 

Moving Average Crossovers

by Wendy Kirkland

The following is an excerpt from Wendy Kirkland's Stress Free Wealth Building

Moving averages help to illuminate the current price positions as compared with the recent past. When you advance to creating your own charts, you will be able to choose how large a picture you’d like by selecting the number of calculation periods used in the construction of the moving averages. The determination of how many moving average periods to employ is based primarily on the expected duration of the option. Say you are planning to be in an option for 1 - 6 weeks for example, a 50-day moving average would be useful in determining the current trend.

Price variations and major shifts in trend direction bring about long and short moving average crossovers. Crossovers are a prime indicator of trading opportunities. Trades made in the direction of the shortest moving average crossover as it pierces the longer moving average.

When a long trading signal is recognized, you can consider purchasing a new long (Call) position. When short signals are generated, you would open a new short (Put) position. As shown on the chart below, arrows pointing upward are long signals and you would purchase Calls, expecting the price of the underlying to go up in value. The arrows pointing downward are short signals and you would purchase Puts, expecting the price of the underling to go down in value.

Depending on the underlying equity, crossovers can be a reliable signal. This works well with a chart that clearly shows a trend or that swings up and down in price over the course of a month or more. What you are seeing here is the 9-day Exponential Moving Average (EMA) crossing up or down over the other EMAs. Notice on the chart how the 9-day EMA crosses up through the other EMAs in late October giving us a buy signal, and then crosses down in mid-November, giving a sell signal and/or a signal to purchase a Put.

The crossover of the 9-day EMA just after the first of the year produced a wonderful new uptrend that has lasted four months to date.

As a reliable indicator, Moving Average (MA) crossovers work less well in a flat or channeling market. If a stock or index is oscillating in price, but essentially trading within a channel, the crossing moving averages may cause you to be whipsawed in and out of trades.

Moving Average Crossovers

 
 

Weekly Market Line in the Sand

by Andy Chambers

The following is an excerpt from Andy Chambers' Weekly Market Line in the Sand

Every week Andy publishes his “Weekly Market Line in the Sand” newsletter. The following are trade updates from his most recent issue.

S&P E-Mini Futures Weekly: The trend is up and the bulls have the momentum. The next target is 2575. Initial support is seen at 2510. A weekly close below 2485 could result in a further decline. The initial hurdle for the bears is seen at 2414.

DIA Weekly: The trend is up and the bulls have the momentum. The next targets are 230 and 240. Initial support is seen at 224. The initial hurdle for the bears is seen at 215.73.

On 8/13 we said: We want to buy the DIA January 19, 2018 220 Put at the market. 8/14-Bought to Open at 7.55.

To Learn More Click Here

 

PLEASE READ. Past results are not necessarily indicative of future results. There is a substantial risk of loss trading commodities, stocks, bonds and options with or without this or any other advertised product, service or system. Also hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.