Stock, Option and Futures Trading
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AMZN, NEM, Market Update
If you played NEM long there is a reason for the resistance today. If NEM opens weak tomorrow you could take quick profits or if you are going to hold out for the $66 target then we would just put a break even stop and see if NEM can continue higher. Either way we would not risk anything on this trade at this point.
I will not be here tomorrow morning so I will not be able to comment on AMZN. Since I will not be here I am putting a stop at even on the option. If it is stopped even I will take another look at it next week. AMZN did not get above the $197.70 level noted in the last post. It was worth getting into the calls a little early because the risk is lower even though it is not as confirmed. AMZN has good Daily and Weekly support at the $170 – $172 lows but since we are playing weekly options that gives AMZN a big range to trade down and still be bullish.
We broke through the 2600 on the NQ after the close today. Breaking 2600 could trigger stops tomorrow at the open for the traders that are short. This is why we have said that until we get a turn pattern it is too early to jump in short as far as a bigger swing type trade. It is too easy to get short and the feeling is something that most all traders have but I have learned that until we get the pattern it is best to stick with the trend and/or if you are going to try to do it play it with cheap out of the money options with defined risk and more time to be right or wrong.
GLD stops is still $172 if long.
eMiniSchool.com
AMZN March 02 185 Calls
This is a more aggressive trade but we can get the options cheaper being more aggressive. With weekly options the risk is the entire option. You can go back on this blog and we have discussed how we view weekly options compared to trading the stock. The risk is always lower using the option even if we are risking the entire option.
This is a cheap way to play the trend even if the trend could be terminating.
AMZN March 02 185 calls are trading at .85 cents right now. If you want to wait for more confirmation you would wait for AMZN to break the $179.70 to enter.
Target1 $2.20
Target2 $5.00
eMiniSchool
NEM, AMZN – Out for the week
NEM broke yesterdays high today and closed strong. AMZN went back and forth closing down 1.60 on the day. I did not do anything with these trades as I was out all of today. I will also be out for the rest of the week.
Even though the market might come down the next few days to close the week it is still to soon to get aggressive on the short side. The NQ did not break and close above the 2600 so there is resistance on the market but we are still in an area to squeeze higher as it seems like everyone is looking to get short.
The bigger short is still days away if it even happens. Yes, we might have good day trades on the short side but I am talking about taking a bigger swing trade short.
eMiniSchool
PS. One of the targets on the GLD long was $170 then we changed it to $175 in other posts after we posted the targets. GLD is approaching the $175 and that would be a good target if you are still long. You can put a trail stop at $172
GLD Post - http://wwweminischool.wordpress.com/2011/12/30/gld-support-jan-153-calls/
NQ 2600- NEM – AMZN
The market came down off the NQ 2600 resistance and we did not get a close above but as the market came down we bounced back from a calculated support level so today was actually a bullish day even though the bigger wave was to the downside.
We have played AMZN multiple times to the long side from the $170 low. If the market opens strong I will be watching AMZN and NEM for calls.
eMiniSchool
DOW Targets 13,979
We had a question on the DOW and if the DOW took out the 12,900 high what is our target. The target on the DOW is 13,979. We posted in the NQ targets a few posts ago in a video.
There are minor targets before the 13,979 but we should make it up to the target.
The NQ needs to break through the 2600 and close above it strong or the market is still vulnerable to have a pull back before going up to the higher targets.
I would not bet short right the trend is still 100% up even though the market could find meaningful resistance off the NQ 2600 level.
eMiniSchool
WYNN if you are still in
We played WYNN long off the $111.80 level. The same day we entered we put a even stop playing it tight. If you held with the original stop at $109 you would still be in. If you are still in the option hit over 150% today as it hit $5.00.
The stop would now be $118.00 and the target is $126
I am not in this I took the even stop but still wanted to update as we know some are still in.
eMiniSchool
Holiday Coupon Codes
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What members are saying
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Happy Trading,
eMiniSchool.com
NQ & DOW Video
If we get follow through to the upside from today we could get another short squeeze into the bigger targets.
eMiniSchool
AMZN Trend Line Lows
The market is back and forth in a tight range digesting yesterdays move. We are watching AMZN as it is sitting on the Daily trend line lows. We do not want to enter right here but it is on a radar of potential trades soon if AMZN can hold this support.
The high of yesterday was calculated but it feels like it is too obvious of a high meaning; it could be a level to suck everyone in short to then short squeeze to a new high. It is too soon to tell if it goes higher or lower we need to make more patterns on the smaller chart to get better odds. So for now the best plan is to watch the smaller charts and dont take bigger wave bets.
If AMZN fails here and breaks support AMZN could go down to the $120 area.
eMiniSchool
DOW Update
Today could be an important top to start to retrace the last wave up on the Daily Chart.
The March 09 low was 6,469 in price. From that low to the high where we are at now the DOW has risen 6,454 points which is very close to the 6,469 price at the low. Maybe it means something maybe it does not but it is showing kind of like a 1 to 1 type of move.
The NQ could pull back into the 2300 and still be bullish so from where we are at now the 1st wave down is 100% counter trend so there is no reason to try to be super aggressive with it even though it could be a big move as it tries to find support.
We played TZA looking for this turn today and we got out even or down 5 cents on the option. Maybe we should have held maybe not I want to see more confirmation before entering too many trades. WYNN was taken out at even. Right here I rather be more flat and see how we close the week.
Happy Trading,
www.eMiniSchool.com
