20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
For more Voice of the People, visit http://at.zacks.com/?id=5851
Featured Post
Stock Market Trouble as Weakness Shows
Earnings from the big name companies cannot seem to keep the markets floating any longer. By 10:00am ET, the SPDR S&P 500 ETF (SPY) hit a high of $129.17. Since then, they have fallen all the way back to new lows of the day at $128.30. This is extremely unusual for a light volume market on a Friday and must peak one's interest.
Over the last three months, the markets have floated non-stop higher, especially on Fridays and even more so when the U.S. Dollar is weaker, like it is today. So what gives?
Other signals that the market is near a top are amazing earnings, being released by such companies as Apple Inc. (AAPL), International Business Machines Corp. (IBM) and Google Inc. (GOOG). All three of these mega market movers reported stellar results, all of them gapped higher but only IBM held the gains for the entire day. In addition, even IBM could not push the markets higher as we have seen a stall out.
The problem here is simple. The markets are up over 20% in the last few months. Even the best earnings -- perfection on all levels -- cannot justify the recent gains. Institutions are looking to sell for now, take profits and evaluate their positions. This is creating a market that looks much different than what was seen just a week ago.
In addition, let's not forget options expiration and the sneaky institutions wanting to push some key stocks lower, to have the plethora of calls they sold expire worthless. When options expire worthless, the institution enjoys the entire premium as a pure profit.
Bottom line is, this market is acting differently these last few days. This must be watched as a top could be near.
About the Zacks Community
In 2008, Zacks Investment Research launched PeopleAndPicks.com, a stock-picking website where members of the Zacks community can test their strategies and share ideas with other members. Each user is scored on the accuracy of his or her picks, and top users are rewarded with free products from Zacks. Registration is free. To learn more visit http://www.PeopleAndPicks.com
APPLE INC (AAPL): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
Zacks Investment Research
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!