Market is now in established uptrend.
All major indices and important stocks are supported by 20 EMA and bodes well for the markets for at least the next couple of months.
Any further drops to 20 EMA or below are buying opportunities.
What this means:
If you have cash on hand, look to buy on weakness.
If you do NOT have cash on hand, you may want to liquidate weaker holdings to get cash on hand.
Selling on strength will ensure you have cash to buy on weakness, therefore always sell (at least some) on strength.
Option players look to buying QQQQ calls when it dips below/close to 20 EMA (it is likely in a day or two)
Why buy QQQQ options?
First, option volume is generally thin, and the spread will cut into your profits. Exceptions are stocks that have very high volume and trade at a sufficiently high price that option volume is high enough that the spread is low. QQQQ options have spreads as low as 0.01 at the money.
Second, an individual stock is much more likely to go against you due to many factors that can affect the stock, industry, bad news, lawsuits or government regulation. ETFs are more insulated against them.
Third, at this point in time, QQQQ rises highest on a strong day and dips least on a weak day among all ETFs. This makes it ideal for playing options long. (This is the safest play in an ascending market)
I will post my option plays as I make them on this forum
-C |
