MTM Options Trader Newsletter - Stop Always Thinking Bullish Trades

[image]() [image] This Week in the Market A Friday pullback was not in the cards as stocks rallied in a big way to close out last week in bullish fashion. Despite the rally, the major indexes keep slopping and chopping around without a distinct trend in place over the last month. Major support around the 3,650 level on the S&P 500 holds as the three major indexes continue to trade well below their 50-day and 200-day moving averages. The VIX (CBOE Volatility Index) remains elevated but closed pretty much flat on Friday despite the rally. Are traders not buying this trend will continue? It is an extremely crazy week as far as quarterly earnings go with many big-name stocks set to release their numbers, including Apple, Meta, Amazon, Alphabet and Microsoft, just to name a few. If that were not enough, there are several economic reports due out this week, including a couple of housing numbers and the latest updated GDP figure. Expect volatility to continue to move the market. Have a healthy, safe and disciplined week! Oct 24: S&P U.S. Manufacturing and Services PMI Oct 25: Consumer Confidence Oct 26: Trade in Goods Oct 26: New Home Sales Oct 27: Jobless Claims Oct 27: GDP Oct 27: Durable Goods Oct 28: Consumer Spending Oct 28: Pending Home Sales [Read Our Blog](=) Stop Always Thinking Bullish Trades Here is a quick but important post about remembering what type of market we are facing and why many traders always think about bullish trades…even when the market is heading south. Let’s face it, it has been a less than stellar bullish year thus far. That said, many traders are still primarily looking for bullish trades. Let’s consider why this may be the case. Ingrained to Be Bullish One of the first things I always ask traders when talking about trades, especially in a bullish market, is whether they have taken any bearish trades. The answer all too often is no. The reason many times is t [Continue Reading ...](=) MTM Watchlist Here are a few trade ideas we may look at in group coaching class this week: NFLX – After gapping a lot higher following earnings last week, the stock pulled in a tad before blasting through its 200-day moving average. Bull call spreads may be explored. TSLA – With a big gap lower after earnings, the stock looks like it wants to move lower despite Friday’s rally. Bear put spreads may be considered. GLD – With the ETF at a potential double bottom, a move higher is not out of the question. Bull puts or bull calls may be modeled out. [image]() 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 emailing investorservices@theocc.com; 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 - 2022. 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