“A fool may earn money, but it takes a wise man to keep it.” – Scotland
A decent bounce today right on schedule after being very oversold and seeing a Doji bar print in the S&P 500, NASDAQ Composite and Russell 2000 Friday.
I didn’t do much today but we did take a small trade in Priceline.com (NASDAQ:PCLN) as it broke my buy point at $1,260.
We used weekly calls and bought them for $11 and sold in tranches at $23.60, $31 and $34.
Some nice quick gains for sure but the stocks did rest a while before continuing higher another $15. I should have held some more longer but I can’t be too greedy in this market.
I’m mostly focused on quicker trades with large profit potential at the moment while major moves are still setting up.
I can’t promise those types of moves all the time like we saw in PCLN today but real-time members will get them if I can spot them during the day.
Let’s move right to the index charts before looking at lots of stocks for members.
SPY bounced well after the Doji bar Friday.
It is too early to tell if it’s forming a bear flag or not yet but the 50-day average at 195.17 will almost assuredly cause some resistance.
Not a huge bounce so far, and on low volume, but we don’t need a huge move to blowoff the oversold reading we just had. Even some sideways action will do it.
Still, cash is a good position or some quicker trade as I’m trying with option if I can find them can work as well.