By: Tom Gentile
on September 1st, 2022
The precious 4-trading days have not been kind to the bulls. Today, was a bullish reversal day in which the daily price action on the Dow, NADASQ and S&P closed higher than their open. That is considered a bullish day.
The short-term trend prior to today on the SPY has not been bullish, The SPY rolled over from their August peak, but today’s bullish reversal day looks interesting.
Price Action that is Deemed Bullish
Whether or not a day is a bullish reversal day, or it was bullish from the open when a security closes at or near its high of the day that is also a bullish sign.
It shows the bulls were actively buying into the close for the day vs selling off at the end.
When a security closes at or near its high of the day it may lead to a continuation of that bullishness for the open the next day.
It does not guarantee it as any number of things can happened overnight to disrupt the markets, but if there isn’t any news to shake things up the markets could maybe gap up or at least open and run a bit higher.
Has the Stick Market Slide from the August High Ended?
The markets still are in an overall bearish way despite the rally off the June lows.
Technically, the bullish reversal day today is happen at a price area where one might say was a previous resistance area at $390.
It is interesting in that the slide has stopped at least for a day back down here at $390.
No one has a crystal ball and can predict what will happen, but this bullish reversal day at this old resistance area could speak for it becoming a new support price area.
Is one is going to consider a bullish option trade maybe consider this $390 price are as a place to consider a technical stop. Meaning, if the markets break below this support it may be time to stop out of a fresh bullish option trade and lean bearish again.
App: Toms Option Tools
Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.
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.