Posted in
Technical Analysis
By: Tom Gentile
on March 24th, 2023
There has been quite a bit of information written and spoken about regarding the volatility in the markets this week as a result of the outlook on the economy and whether we will go in to a recession / if we are already in one / and if we are in one when what it will take to avoid one or at least experience a soft landing / mild recession.
You can see by the amount of / characters in the writing there are a varying amount of opinions about what is going on right now.
What is going to be emphasized in this article is a couple of different scenarios the markets may go through if buying steps back in to the stock market to cause prices to move higher.
Today the equities markets are trading higher and if they remain do the last hour of trade this would constitute a bullish reversal day.
This may portend and end of the recent sell-off for the which may bring some carry over in to next week.
The blue arrow is indicating what may be the first scenario that plays out in that prices rally higher from here/today’s bullish price action.
Figure 2 above is what could be a different scenario that still ends up seeing price action higher for the SPY (what represents US equities), but not without puling back in price a bit lower (first blue, down arrow) before it then rallies higher, (second blue, up arrow).
Of course, we won’t know until trading resumes next week, but if you see either of these patterns playing out and lean bullish with your sentiment then maybe a look at the Morning Reports Lists to find call option activity is a starting point for your options trading research.
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.