Tempting Tuesday – Low Volume Rally Challenges Our Bounce Lines

It LOOKS impressive, doesn't it?   As I said to our Members this morning in our Live Chat Room, all is going according to plan , as we expected to see strong bounces in our indexes by Wednesday – no matter what news or earnings turned out to be.  If the powers that be want the market to bounce – it bounces .   Our general rule of thumb is that dip buyers only learn their lesson after they have been burned 3 times and, so far, only the August dip buyers are being relly burned but a failure to retake that line and a move lower – that might get them to think twice about mounting another rescue effort next time we test 1,050 on the Russell.   As you can see from this S&P chart with Fed notes attached, the manipulation we told you about on 10/6 (see: " Market Mayhem – 12 Fed Speeches in 5 Days Causes Chaos ") is merely playing out according to plan and this is why we were able to take full advantage of both the dip (see: " Money-Making Monday: How to Profit from a Market Correction ") and the bounce (see: " Wednesday Market Weakness – Oil Collapses to $80, Good or Bad ? "). In fact, the TNA Oct $58/60.50 bull call spread that we pointed out last Wednesday at $1.12 closed on Friday morning at $2.40 – up a very nice 114% in 48 hours for those of you who get our morning newsletter ( which you can subscribe to here ).  Our suggested roll to the Nov $56/63 bull call spread at $3 still has to play out but, so far, we're at $4, so up 33% in 4 trading days is " on track " towards our planned 133% gain in 30 more days.   This is how rich people get richer folks – if you are in the top 1%, the Fed is out there working for us – and they are going to make sure we can make nice, little leveraged bets like these to pull off some stunning returns in any kind of market conditions.  That's why, on a Monday two weeks ago, …

RUT WEEKLYIt LOOKS impressive, doesn't it?  

As I said to our Members this morning in our Live Chat Room, all is going according to plan, as we expected to see strong bounces in our indexes by Wednesday – no matter what news or earnings turned out to be.  If the powers that be want the market to bounce – it bounces.  

Our general rule of thumb is that dip buyers only learn their lesson after they have been burned 3 times and, so far, only the August dip buyers are being relly burned but a failure to retake that line and a move lower – that might get them to think twice about mounting another rescue effort next time we test 1,050 on the Russell.  

As you can see from this S&P chart with Fed notes attached, the manipulation we told you about on 10/6 (see: "Market Mayhem – 12 Fed Speeches in 5 Days Causes Chaos") is merely playing out according to plan and this is why we were able to take full advantage of both the dip (see: "Money-Making Monday: How to Profit from a Market Correction") and the bounce (see: "Wednesday Market Weakness – Oil Collapses to $80, Good or Bad?").

In fact, the TNA Oct $58/60.50 bull call spread that we pointed out last Wednesday at $1.12 closed on Friday morning at $2.40 – up a very nice 114% in 48 hours for those of you who get our morning newsletter (which you can subscribe to here).  Our suggested roll to the Nov $56/63 bull call spread at $3 still has to play out but, so far, we're at $4, so up 33% in 4 trading days is "on track" towards our planned 133% gain in 30 more days.  

This is how rich people get richer folks – if you are in the top 1%, the Fed is out there working for us – and they are going to make sure we can make nice, little leveraged bets like these to pull off some stunning returns in any kind of market conditions.  That's why, on a Monday two weeks ago,
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