Seeking Alpha

Option Milliona...'s  Instablog

Option Millionaires
Send Message
Option Millionaires was started in February 2008 to provide traders with information about option trading. Led by three career option traders, whose pseudonyms are JimmyBob, UraniumPintoBeans, and Vantillian, they started one of the most popular option trading communities on the web. Now, Option... More
My company:
Option Millionaires
My blog:
Daily Read
View Option Millionaires' Instablogs on:
  • Short-Term Trade – Western Union (WU) Flag Breakout (Video)

    By Chris Diodato

    It's Friday, and the end of another exciting week of trading is upon us. Looking through my stock screeners, I found that Western Union (NYSE:WU), looked ready to break out to the up side.

    (click to enlarge)

    Now this is a short-term trade, as I expect the broad market to top very soon, and with that, most stocks. We are looking for a quick 7.5% gain to walk away with. Take a look at this video for the analysis and the strategy.

    Happy trading!

    ~Chris Diodato

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Oct 19 10:14 AM | Link | Comment!
  • Apple – Ready To Bounce In Near Term - Targets Inside

    By Chris Diodato

    Every market technician saw it, and every technician raved about it, as Apple, the darling stock of the world, formed a bearish head and shoulders top. The breakdown began last Friday, as the market leader pierced through the bottom of the major support level at $655.

    (click to enlarge)

    Yes, the target is down at $600, but very often, this pattern will pull back, shaking out weak sellers. With bullish divergences in the RSI right now, and a very bullish candlestick pattern, it looks like it is ready to do just this.

    (click to enlarge)

    And in the daily chart, you can see the candlestick pattern, known as a hammer. This is a signal that demand has once again stepped in and has taken control in the market. It's a short term pattern with short term implications.

    (click to enlarge)

    I have the target in this chart at around $655.37. The time target would be around October 12, which conflicts with my October 23rd top prediction. Therefore, I suggest to use $655.37 as a "minimum target" for trading purposes. The second target would be at $674.62

    Now remember, these are just my thoughts for the short term. With the breakage of the head and shoulders pattern last week, the active target is $600. That's the longer term target. Here, I am just trying to forecast the fluctuations until that point.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Oct 09 9:27 PM | Link | 3 Comments
  • Apple Looking Exhausted, But Bullish Until October 23rd!

    By Christopher Diodato

    Every time I see a commentator on CNBC talking about Apple, they always profess that the stock is invincible and every time the stock declines, there is always enough demand to create another rally. The reason that the technicians cite is that volume always increases right at the lows, which represents accumulation. Here's a chart of Apple, with the volume bars near minor bottoms highlighted in blue.

    (click to enlarge)

    Now, as we travel downward toward support again, we see that volume is increasing, but price is not moving. Even though, as I mentioned in my last newsletter, Apple is forming a bearish head and shoulders, it does not look like it will break down, yet.

    We know that volume is increasing and price has stopped declining, so that should make us slightly bullish. Also, momentum is showing strong bullish divergences. The chart is below.

    (click to enlarge)

    Of course, attempting to accomplish the so-called "impossible," my Gann analysis calls for the last top to occur on October 23rd, a few days before the broad market tops as a whole. So, now is not the time to short Apple. One more rally is in the works!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Oct 01 3:34 PM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.