Sellers Are Still In Control in This Stock

We're past the Fed meeting, and the news wasn't bad. We can cruise now, right?

No. It's only starting. First, today is a ‘quadruple witching day', the expiration of September stock index futures, index options, stock options, and single stock futures. Expect just a wee bit of volatility today.

And in less than three weeks, Q3 earnings season begins when Alcoa releases earnings. Mid-October will have most of the S&P 500 coming out with their results.

And what could top this cake? Remember the Fed, that group that yesterday felt the economy, seven years after the ‘great recession', is too fragile to handle a quarter of a percent rise in the interest rate? They meet again on October 27th and 28th. Surely that feared 0.25% will emerge from the shadows then.

So an investor considering buying stocks for the longer term right now is like a smoker in a fireworks factory. It may work out, it may not.

But short-term trades can keep us entertained. Yesterday's downside reversal near the close shows sellers are still in control.

In today's Seasonal Forecaster, I cover a potential trade setup in a stock that cannot draw in buyers, with the chart pattern suggesting more downside:

But what does the seasonal pattern tell us about this stock over the next few weeks? Does it have a track record of institutions accumulating the stock before the company's Q3 earnings announcement, thereby adding risk to a short trade right now? Today's newsletter considers this important aspect of trade evaluation and helps give us the final go/no-go on this trade.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, please click on the following link: www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2015 Stock & Options Training LLC

Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.

Gregg Harris is the Chief Technical Strategist at MarketTamer.com.

The content on any of Market Tamer websites, products, or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options, and other securities involve risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities are not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/publications/risks/riskstoc.pdf). The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.

 

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