This was a recent post from a great trader and longtime colleague Jay Kaeppel
Sometimes it’s good to go back to the basics. So here goes.
Trading success comes from a “reality based” approach. It is NOT about “all the money I am going to make!” It IS about “formulating a plan” (see the questions below) AND “doing the right thing over and over and over again”...
This is a good upside divergence on MACD the double bottom pattern isn't hugely tidy but MACD seems to indicate price should be in $23 + range. OTM options May 17, 2019 23 calls are .25 - .40 the Further OTM calls have no volume action so steering clear.
$SGMS Looking oversold and due to bounce after a healthy 50% retrace of recent run up. After crushing earnings last month and seeing a moderate pullback recently...I think this stock is primed to resume its ascent. Targeting $32.00-$34.00 range by late April / early May.
If I was looking to play this with options...calls are looking fairly cheap OTM so I don't...
Biggest sporting season is around the corner. My home state has legalized sports betting. This is a multi-billion dollar business and not sure what else is needed. Demand is high. Quadruple bottom (see it). Eyeing some long dated calls.
It has been a few months in a little sideway trend and finally broken up over it, after all, it has also tested it as support.
It shouts it will get higher, people took their winnings. 47.70 (Fibonacci extension 1.618)
Something I've also noticed that it also respects Support / resistance.
It is currently on a resistance level, I think it will continue.