Sunday Night Weekly Recap SEP 8, 2024

Well if at fist you don’t succeed, try, try , try again!!! The new name change went into affect on Friday afternoon but is still appearing in the inbox as the old one. That will be corrected in the morning.. Our new name here is theoptionscoach.net 

The markets are in full blown selloff mode here. Reducing exposure and raising capital to be deployed when calmer days come may be offered for consideration for investors looking to reduce risk. We can’t invest if we lose all of our capital. Rotating into safety plays like PG or JNJ like I mentioned last week may warrant consideration as an alternative to the highflyers for now. The chart on PG is the more attractive of those two.

When I post the Heat Map every Sunday night it shows the past week, the past 4 weeks, then the past 12 weeks. One of the most useful aspects of Heat Maps is you can see stocks that are strong where others are sinking. The Heat Map for this past week shows a tiny bit of green over to the right side. In the midst of this recent stock selloff those stocks that are green stand out. There’s not many of them.

Late last night I ran some fresh scans.
One thing I don’t like is if you run:
Scan A:
Scan B:
Scan C:
Using completely different criteria on all 3, but they all come back with the exact same stocks. That only happens in weak markets…That’s it…..

These next charts made the “short list” of the fresh charts that were even worthy of consideration.

Lets start with T. This is one we have all known about for a long time most likely, it’s one that kind of slipped under the radar but is seriously holding it’s own in this selloff like a champ. From a Options stand point there is so much good going on with it that it’s hard to understand how the price hasn’t risen more yet.

Next is CM. Are you familiar with the term DTC? It stands for Days To Cover. When institutions use DTC they look for anything over the number 5, it’s a mathematical formulation that suggests how long it would take the “shorts” to cover in the event of a big run up. If something is under 5 that is still okay, but when it’s over 5 it draws attention, when it’s 11.9 like CM is here it says “Hey buddy, you might want come take a look” It’s way up out of it’s last box, using DTC is not a guarantee of anything, but it is a metric that is worthy of consideration.

Now lets look at AGX. Anyone up in the Boston area? I have friends up there, they all like to say “Wicked” a lotttttt…..lol…………. AGX is seriously wicked here. It retreated back to the bottom of it’s box before it gap up up biggly on Friday, what we would of liked to of seen however is it close above the mornings open, it didn’t. If it pops again it could see some “Wicked price action”

Lastly we have the prettiest chart of the day. FIS. Seeing how it just broke out and is retracing back down now we should be watching for any potential bounces back up off of the top of the box.

Lets take a quick minute and talk Options, that’s part of why we’re here right?

Years ago, many many years ago, when I first started trading Options I followed a Options service that I shouldn’t have been. Not yet at least. It was 100% sink or swim….. It wouldn’t have hurt me to have had some more understanding of the mechanics of the trades.

When we roll out the Premium service next month here at theoptionscoach.net it will not be a “sink or swim” approach.

Whether you invest with stocks, options, futures or anything else, it’s not the underlying asset, it’s you and your strategy. Either you produce, or you don’t. You can’t go to the bank and say “Well I could of made $10,000 this week”…. But what you can do is improve your odds by honing down your investing skills, and strategies. Cut losses small, not the winners.

The strategies that we’ll be using will be conducive to stocks that have the type of price movement that the stocks in all 4 of these charts have. They will be income producing while defining risk.

If you like this content share it with your friends so they can subscribe please. I’ll be back in the morning with days Pre Market Gap and the S+P 500 Support number. Tomorrows another day

Invest wisely, live charitably and be well
Brother Bill