On Friday, I offered a very simple way to determine extreme overbought status in my blog posting An Overstretched Rubber Band?
I noticed some of you were in the back of the class sending texts on your iPhones instead of paying attention. So today we're going to have a test. Get a #2 pencil and turn off your cell phone.
Based on Friday's class topic, is this stock…
A. Possibly overvalued?
B. About to set a new low?
C. Listing to port?
Is this stock's EPS and Revenue change numbers…
A. Comforting to institutional traders?
B. Showing signs of steady, predictable growth?
C. Making reasonable traders move on to find more stable, predictable stocks?
Does the next 5 weeks in this stock's track record suggest…
A. A strong history of accumulation by institutions over the next 5 weeks?
B. A scary track record of wide variability and unpredictable gains/losses?
C. It's time to pour a good shot of bourbon and think it over?
Based on the above evidence, should you…
A. Sell all your stocks and buy Bitcoin?
B. Investigate shorting this stock or buying long puts?
C. Open a margin account and bet the farm on this stock going higher?
If you answered A, C, B, and B, then the final question is which stock is this? Today's Seasonal Forecaster newsletter has not only the answer, but offers two ways to trade the current setup in this stock, one of which would return 40% in 15 days. (If you missed any of the answers, you're going to have to stay after class with me).
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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