OptionsRising

OptionsRising

This chart follows a swing put trade idea I posted in early July (linked). I bought and sold those puts when price dropped from 322 to 318. Now I want to share this channel I found on the weekly chart, and I am wondering if the Feb. - Mar. 2020 price action will occur again? I like HD for day trades and short term swings. I prefer to keep a smaller position...

OptionsRising

This chart follows up on my earlier post (linked). I bought swing puts and while price pushed over 322 I was able to hold my puts due to time, and small position size. I sold them for profit on 8 Jul when price was around 318. Here I see another opportunity for swing puts, based on RSI. On the daily chart, left, RSI dipped below 33.33 and then bounced up, but...

OptionsRising

Homes were renovated, appliances were upgraded, and new homes were furnished. This does not happen annually. I am looking for HD and other related stocks to cool off. This 321 area is a good place to enter swing puts. The 14-day RSI shows a dip below 33.33 (yellow circle), which means I am looking for this move up to stall soon (RSI pink circle) and turn down....

OptionsRising

Let's talk about BTC, Bitcoin, first. On the weekly chart (bottom right) you can see if price closes below 32200-32000 there is really no support until the lower yellow line between 19-20 thousand. If price holds this level there is a sizeable move up to the 20sma. For now, moving averages and RSI are bearish. On the daily chart, as shown in yellow circles,...

OptionsRising

Please see notes on chart. I bought 21 May 418 strike puts when SPY was over 422.30. Strangely, the U.S. markets are flying high today while individual stocks are chopping around and/or still leaning bearish on 30 or 60m timeframes. SPY weekly chart has been extended for so long that I am ignoring it for now and paying attention to the daily and 30m for context.

OptionsRising

IWM has risen a lot since November 2020 and I expected more of a pullback by now. That said, as a trader I am trying to see the chart without bias. So here is a head and shoulders pattern at the top, and price has resistance around 228-229 and could move lower from here. At the same time price is over the white downtrend line and RSI has also moved over the...

OptionsRising

The blue lines on chart mark the candles that correspond with peaks in RSI and directional movement. Both times previously, price reversed lower after buying was exhausted. One difference is that today RSI is at a peak while the green directional line is lower than yesterday. One possibility is that price may try to move up again tomorrow before retreating...

OptionsRising

Today is the third bullish candle formation, as marked on chart. Price could reach 200+, but it could also be rejected from 20sma and move lower (no expectations, only chart reading). Right now price action looks bullish on 30m as well, so if you are nervous about trading GME but you know there is a great trade possibility, just buy one call. The reward to risk...

OptionsRising

Read chart notes. After a long move down price may be ready to move up again. Looking for 30m candle close over 22.60 to create a higher high close. Multiple stop losses can be set: below 22.30, below 22.10, and option percent down.

OptionsRising

Here is a simple chart showing how both BTC and BCH are consolidating after a large move down. While experience tells us that one move down is usually followed by another, we should not expect it. BTC is currently more bearish on the daily and 4-hr charts. While BCH is in an uptrend its price more than doubled in April. Price could pullback more, but the...

OptionsRising

"Autopilot" is contradictory to Tesla's own description that it " is an advanced driver assistance system." So is "Full Self-Driving Capability." The language gets people excited enough to ignore the reality, as Tesla states the features "require active driver supervision and do not make the vehicle autonomous." So please, stay in the driver's seat! (source: ...

OptionsRising

Here are Bitcoin's 4hr and daily chart notes: * I am watching price action in the orange ovals * Purple 4hr support is 20sma and trendline on daily (purple dot) * Yellow lines mark supports on each time frame * Pink line 56,000 is first major support on daily While it looks like a pullback is healthy for more upside, when you zoom out to weeky charts you see...

OptionsRising

It is unusual for 14-day RSI to be this elevated on an index. Note the sharp move down that Stochastic %K (blue line) in the last two pull backs. Both times there was heavy selling, as shown by candle size and high volume. Currently you will note diminishing volume over these past two weeks. There is one other strong reason for SPY puts that is not shown. ...

OptionsRising

I have been wondering if IWM is still a leading indicator (linked chart). Today while everyone is celebrating new highs in SPY - media talking about the coming economic boom - IWM is quietly resisting the 20sma and looks like it wants to move lower. The orange circle shows that RSI dipped below 50, bounced above on 8 Apr (retest), and is below again today. 10ema...

OptionsRising

Please read chart notes. Yellow and orange arrows show how VIX moved lower as S&P 500 resumed its uptrend. However VIX is below 20 after a long time, and these two inside candles contradict the index price action. IWM is retreating from 226 resistance; though I wonder if it still serves as a leading index. On the S&P, RSI is high and should turn lower. More...

OptionsRising

Please review chart details to see how the 30m and daily charts are setting up nicely together for a swing call trade. Dashed lines mark upside targets. The price drop was unpredictable, and so is the amount of buying that may ensue. The stops indicated are based on time of posting. If price closes over 44.75 today then there is a bullish engulfing on the...

OptionsRising

For a long time the Dow Jones Transportation Index (DJT) and Russell 2000 ETF (IWM) were used as leading U.S. market indicators. Now with all the federal market manipulation (via the bond market) I am not sure how much this still holds true. Assuming the IWM still gives useful insight, I see reason to pause the buy-everything exuberance and tread with great...

OptionsRising

The chart is simple to read with RSI and stochastic both turning up. You can trade up to the blue line, even a day trade. Hold for break higher or reenter after line is broken, since there could be a pullback first or line may hold. For a longer hold I want to see moving averages cross up. Risk is low because stops can be a certain price and/or a percentage of...