Tension mounts!! What will happen next?

With the markets bouncing off resistance again today and making a large drop they are all now sitting at support. The technicals are starting to show some weakness and looking to down turn, in fact stochastics already has.

SO will the support hold with the technicals showing more selling to come? We shall see.

In the meantime, lets review the trading of conservative credit spreads -

Here is our checklist-

Stock/Index Trend - bullish or bearish
Support/Resistance Lines - strong, weak, near, far
Option Chain - profit, expiration date
Credit Spread Calculator - recheck profit, break even point
Stock Quote Detail - News, Earnings, Volatility
Probability Calculator - Likelihood of making a profit

As you can see we are half way through this list.

We have gone over the tools needed, how to set up your charts, did some technical analysis discussion (MACD, Stochastics, Volume, DMA’s) and of course the all imporatnat Support and Resistance, and finally we went over Choosing the Strike Price for the most profit in the 2 to 6 weeks the trade goes for.

So now what is left is the easy part just inputting numbers into specific calculators and checking some news and you are ready to trade. We’ll start tomorrow or the next day. Stay tuned.

No Tags