Finally, a decent Money Flow Buy set up.

AS the market has gone nowhere over the last several weeks, I've been sitting on my hands... a lot.   Following the sell off and inevitable dip buying ( sarcasm) the market is now back at highs, and may have even broke out above 2400.  If you watch our  (almost) daily video's you know that our posture is bullish, however  we do not expect big moves to the upside.  We may continue  sideways, we grind a bit higher.  Then of course there is the daily possibility that the wheels come clean off the political machine.. then all bets are off, so to speak.    I'd recommend you watch our (almost) daily videos if you'd like a sense of our market posture.     

That said,  I am looking for bullish entry signals that meet my rules.  For review, I am trading the Chaikin Money Flow Buy signal.  My Plan and entry rules can be found HERE.   

AET ( Aetna Inc) recently generated a Money Flow Buy. 

First, lets talk about Health Care.   If you follow our weekly sector analysis, you've noticed health care has been in the top 3 for several weeks. ( ranked based on Chakin power bars)   You can follow our weekly sector analysis HERE.    While out performing the market based on the Chaikin Power Bars, money flow has been weakening, although remaining positive, relative strength is strong vs the SPY and the sector recently began rolling up. 

Back to AET.   While money flow over the previous year has been mixed, most recently its been quite strong.  Also, price remains  above a rising long-term Chaikin M and , Short-Term 21 day MA.  AET has positive relative strength vs the SPY and is rolling up out of oversold.  Earnings are well outside our 30 day window, and as I mentioned above the  Health Care ETF, XLV has been out performing on a fundamental basis for many, many weeks.    So, this trade meets all the rules of my trading plan.   

With the stock trading at roughly 142.00 on the day I entered, I sold the  140 put ( JUL 2017) and collected 2.98 in credit.   I have added this trade to my trade log.  

Here is an overview of my Money Flow Buy  MF Strategy so far this year.   I've been assigned on two trades, TXT and FLR, the rest of my trades have expired worthless.    Remember,  my goal is to have the stock assigned, not sell puts that expire worthless. 

Happy Trading!

​-AA