Sector ETF Performance and Money Calendar

Tom Gentile

Posted in
Options Trading

By: Tom Gentile
July 15th, 2022

2 mins read

What is often looked for when deciding on a trade (bullish or bearish) is what is the catalyst for the trade?

Take for instance the Earnings Mastery Course going on right now, there is no confusion as to what is the catalyst for an options trade and that is the pending earnings announcement date. Factor in the prospect of Implied Volatility rushing in prior to the eps announce date and that makes for a strong probability of a straddle trade working.

When looking at Money Calendar we don’t look for an earnings announcement date though we pay attention to it, so we don’t hold an option trade from Money Calendar pattern over the earnings and risk volatility crush happening on it and damaging the trade.

Tom has said many a times the Money Calendar is the catalyst or reason for the trade.

But we do look at a couple of other things when trying to select a security with a Money Calendar pattern in our selection process. One of them is sector strength or weakness and we look at the SPDR Sector ETF’s to see each of those percentage gain or loss over at least a month worth of time to see where strength and weakness is.

We then see if there is a Money Calendar pattern on a security that is a component of the ETF we choose to focus on and here is a Money Calendar setup found by doing so.

First look at the graph data from www.sectorspdr.com: This is a 1-month assessment:

1-month assessment from sectorspdr.com
1-month assessment from sectorspdr.com

Looking at Money Calendar bearish pattern with a start date today on a stock in this ETF we found one on Occidental Petroleum Corporation (NYSE: OXY).

Image 36

It is a 20–30-day pattern. It has a 90% accuracy. The avg. profit would be preferred $3 or greater, but if one looks at the avg. profit in the last 4-years its avg. profit is a bit over $4. Lastly, it has a positive Power Meter (meaning the ang profit move in the recent 3-4 years are higher than its avg. move over the 10-years.

Should this speak to you looking at a bearish option trade, we encourage you to work with your broker on which one to use.

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.


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