With the market breaking above the long term Chaikin trend line yesterday and holding in today's trading, we can finally consider stocks to trade over a multi-month time frame.  A review of market conditions is here.   We had a fake-out breakout a couple of weeks back and initiated some trend trades.  Despite the fact that the market failed to hold the breakout, our trend trades have been doing well.  It's hard to lose when you invest in very bullish stocks in the best industry groups using Chaikin Analytics. But most of our money has been made on short term directional option trades while the market has gone sideways most of the year.  It's a strategy I'm willing to teach anyone who subscribes to  Chaikin Analytics  in a free one-on-one lesson.  Start with a free trial here. .  

Chaikin Analytics provides great tools for quickly forming an opinion about  market direction and picking appropriate trades in just minutes a morning.  This is the routine I follow before I head to the office to start my (non trading related) workday. 

Our bearishly wagered CME earnings trade worked out in the direction of a VERY BEARISH Power Gauge rating.  While the Merc's actual earnings met Wall Street expectations, the stock has sold down the last couple of days as valuation metrics, price volume activity and analysts' forward outlook have helped keep the stock price suppressed. The collapse in implied volatility once news is delivered factored into our profits too.   We're going to try to get out of our OUT OF THE MONEY bear call spread tomorrow (Monday),  with 5 days left to expiration of our weekly options.  Here's the closing trade, which if successful, will result in a quick $200+ round trip trade profit for our REAL MONEY account.  BUY +6 VERTICAL CME 100 (Weeklys) MAY2 14 71/73 CALL @.20 LMT [TO CLOSE/TO CLOSE]   (See last week's blog entry for the set up)

Not counting my chickens here until I'm out.

I have been offering a one hour private lesson on how to trade vertical credit spreads  or calendars through earnings for anyone who commits to a one year subscription to Chaikin Analytics.  This is an advanced option strategy that I know well, but have only recently been using it to "game" earnings announcements.  It's a high probability strategy, where the opportunity for profits relative to the risk is very, very attractive.  But it's not something I'd recommend that a novice options investor dive into without mastering basic calls and puts strategies first. 


 Honestly, I am not generally a speculative trader, but our success with real money has been dramatic. This spring, we've replicated last Fall's success in our paper account during earnings season   The win rate is really something, and I will use Chaikin Analytics to place earnings bets as a regular part of my investing strategy moving forward. I did a seminar with Marc Chaikin last fall during which I announced a 30/33 win rate on earnings bets as an experiment.   I'm convinced ths app gives me an edge!  I will use options to define risk so that I can manage the unpredictable nature of trading on company news.