MTM Options Trader Newsletter - Support and Resistance Trading Techniques

[image]( [image] This Week in the Market Over the past week, the story has been the continued run in the DJIA & the S&P 500. The news out of Washington was the Senate’s approval of a $1.2 trillion infrastructure bill, along with the authorization of a $3.5 trillion additional spending allowance if needed. Most sectors of the equity markets ended positive for the week. On the downside, chip stocks underperformed the market, closing down 2.5% for the week. U.S. Treasuries faced early pressure this past week but recovered almost all the losses incurred during a strong bounce on Friday. Implied volatility levels as measured by the VIX dropped again. Economic reports last week came in mostly in line with expectations. However, the University of Michigan Consumer Sentiment Index surprised everyone with a reading of 70.2. This is the lowest reading of the vaunted gauge of consumer activity since October 2011. One can safely assume that rising consumer prices coupled with uncertainty regarding the Delta variant contributed to the dismal report. As we head into the second half of August, the summer doldrums often settle in until after Labor Day. Don’t get complacent, though, because sometimes things can really heat up. Watch the horizon for hurricanes and all other kinds of variants that might kick off some volatility. Next week the number of earnings reports starts to slow down. However, some big names like WMT, TGT, HD, LOW, A, NVDA and AMAT are due to release. Savvy traders will at least stick around until the FOMC Minutes are released on Wednesday afternoon before heading to the beach. Aug. 16: Empire State Manufacturing Index Aug. 17: Retail Sales Aug. 17: Industrial Production Aug. 17: Business Inventories Aug. 17: NAHB Home Builders’ Index Aug. 18: Housing Starts Aug: 18: FOMC Minutes Aug. 19: Initial Jobless Claims Aug. 19: Philadelphia Fed Manufacturing Index Aug. 19: Index of Leading Economic Indicators [Read Our Blog]( Support and Resistance Trading Techniques Support and resistance are levels on a chart that tend to keep the underlying from moving through those levels. Support keeps the underlying from moving lower and resistance keeps the underlying from moving higher. Generally, two or more levels can be potential support and resistance but sometimes once is enough like a recent pivot high or low. It is really the trader’s interpretation as to what support and resistance are. Traders will often [Continue Reading ...]( MTM Watchlist Here are a few trade ideas we may consider in group coaching class this week: AAPL – After a strong rally last week, it may be time for a consolidation or pullback. A limited risk bearish spread may fit the bill. BBY – Seemingly an ascending triangle suggests a bullish overall pattern that might just indicate a breakout. Earnings ahead on Aug. 24. QQQ – Coiling spring seems like it could coil some more. Can you hear the call of the iron condor? [image] We're honored to have Dan's Book Trading Option Greeks listed as one of the [Top 6 Books to Become an Option Trader]( by Investopedia. [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