Posted in
Education
By: Tom Gentile
on February 27th, 2023
How many of you watch a or multiple financial news networks?
How many of you watch it with the sound off? That may seem like a funny question or us trying to be funny, but many do as there are time there can be so many people talking all at once and it gets difficult to ascertain the point being made.
Sometimes there are subjects of discussion that may not pertain to what one is investing or trading and so muting the volume cuts off the possibly distracting dialogue.
It is believe by some that the reason for the headline news banners across the bottom of the screen are to get you all to focus back on the channel and maintain your viewership so you stick with the channel through the commercials and the ad revenue from commercials keeps coming.
The thing I want you all to focus on at the end of the day is actually what happened to the markets and make your assessment of your directional assessment for the markets not let the headline news banners or commentary dictate your thoughts on the matter.
What is YOUR Assessment of Market Direction Based on the Day’s Price Action?
Take a day like today. You area likely to hear a market recap (if you haven’t already) the markets rebounded after its worst week of trade since last December. Or you might read and or hear the markets rallied toady. Or the markets had a bullish day. Or the markets are taking back the losses or SOMETHING to the effect things are bullish or better than they have been.
This could lead to one taking this as an implication things are going great pr great again.
It’s like they fear they will lose viewership if they aren’t putting a positive spin on things.
This all may be the case and it may be all well and good over time, but take the time to SEE for yourself what is going on with price action before you just let the headlines of the day and their market recap announcement(s) tell you what is going on.
Look at the Day’s Price Action
Today the market, the Dow Jones Industrial Average did close higher by 72=points. This is technically a bullish day in that the markets closed higher than the close of the previous trading day. It was a better day of trade from the week prior when the Dow-30 ended lower on the week.
If you look at the day of trade though you will see the markets gapped-up in price and ran up to where the Dow-30 was up 300-350 or more points.
The rest of the day off that higher it ran lower and was basically breakeven on the day until a bit buying kicked in the last half hour or so of trade to finish up that 72 points.
The question is this a truly bullish day?
Or is this a sign that a good day to start can finish much lower than its high and that is actually a sign that investors are rejecting these higher prices and there may still be more softness in pricing to come.
Of course, no one has a crystal ball, but don’t let the feel-good headlines geared towards making stick with their channel dictate to you how you perceive the pending market direction.
We would like to see the markets find support and break the downdraft from last week and resume a bullish directional bias for our long positions and bullish option trades, but we need more follow through on a day like today before we have more of an agreement with those headlines.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.
Disclaimers
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated 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 hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.
Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.
This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.
You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.
Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.
Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.
A full disclaimer can be found here: http://www.tomgentile.com/legal_disclaimers.html.