MTM Options Trader Newsletter - How to Use Moving Averages and Pivot Points in Trading

[image]( [image] This Week in the Market Several of the major indexes set or closed at record highs last week as buyers seem undeterred, counting on low implied volatility levels and the Federal Reserve to keep this bullish train rolling. Speaking of implied volatility, the VIX (CBOE Volatility Index) dropped to levels not seen since February 2020. In addition, and worth noting, there were several big lots of VIX options traded this past week, possibly as a hedge in case the market takes a dip and IV levels rise. As far as the outlook for the market goes this week, a bullish to non-bearish bias continues to make sense provided there are no dramatic downturns. The next set of quarterly earnings kicks off in a modest way this week as several financial institutions are set to release their latest rounds of numbers. Alcoa is expected to release its numbers this week, and it traditionally has been the company that starts the avalanche rolling. In addition, there are several economic reports on the slate, with Thursday being a particularly heavy day of releases. As is always the case, make sure you do your due diligence and check the expected earnings date before taking any trade. Have a super week and a healthy one too! Apr 12: Federal Budget Apr 13: Consumer Price Index Apr 14: Beige Book Apr 15: Jobless Claims Apr 15: Retail Sales Apr 15: Industrial Production Apr 16: Housing Starts Apr 16: Consumer Sentiment [Read Our Blog]( How to Use Moving Averages and Pivot Points in Trading Moving averages are the most popular directional gauges. They are typically the first technical indicator in the novice trader’s toolbox. Many professional traders rely on them as well. Typically, the directional signals come when a short-term MA crosses a long-term MA. The problem with this method is that by the time the averages converge and cross the directional move is already well on its way. Thus, entering a trade using this method usually leads to late entry and poor trade location. Bad trade location increases risk and reduces profits. [Continue Reading ...]( MTM Watchlist Here are several trade ideas we will be exploring in group coaching class this week: HD – Here is a stock we have looked at several times and for good reason. The stock continues to churn higher and more bull call spreads will be considered. COST – The stock closed at a major potential resistance area. Bullish and bearish vertical debit spreads will be examined depending on what resistance does. TSLA – The $700 level is still great potential resistance so there is no reason why more potential bear call spreads will not be considered this week. [image] Get THE Edge! Even in today's electronic markets, market makers from the trading floor offer a rare perspective on the mechanics of the options exchange. In The Market Taker's Edge, trading floor veteran Dan Passarelli opens his personal playbook to making options gains consistently enough to become a successful full-time trader. The Market Taker's Edge shows you how to use insider strategies from the options trading floor so you can gain edge in your own trades. [Buy Now on Amazon]( The strategies in this newsletter are for educational and informative purposes only. All information disclosed in this newsletter should not be considered complete in its entirety. Market Taker Mentoring, Inc. will not be held responsible for changes, oversights, errors or omissions. Dates, prices, news and other information may not be accurate. Please verify all information before trading. You alone are responsible for your own investment decisions. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD), which can be obtained from your broker; by calling (888) OPTIONS; or from The Options Clearing Corp., 125 S. Franklin St., Suite 1200, Chicago, IL 60606. No statement in this newsletter is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Copyright Market Taker Mentoring, Inc. 2008 - 2021. All rights reserved. Reproducing or redistributing this content is a violation of federal law. [image] If you do not wish to be contacted via email, you can unsubscribe using this link: [Unsubscribe]( Unsubscribing from email notifications DOES NOT cancel your class, subscription or recurring payments. We recommend that current students do not unsubscribe from email notifications. If you unsubscribe from email notifications, you will not be notified on how to access the classes or subscriptions in which you are enrolled. Market Taker Mentoring, Inc. PO Box 117 Frankfort, Illinois 60423 United States