We're coming up on Trick or Treat time so I'm ready for some treats from the market.
The overall markets are currently in an uptrend. They have been just kinda grinding slowly higher with lots of sideways motion. However with the elections coming up and with some better than expected earnings reports lately, and the fact that the end of the year is closing in on us (i.e. the markets usually go higher the last couple weeks of December), then we've got some good reasons to be bullish. Oh, in addition to the trend being bullish of course.
Here's a chart of BBY:
As you can see it's currently in an uptrend and it just broke out of a sideways channel that it has been in for about 3 weeks. The break came out on news that it has been upgraded by an analyst from "hold" to "buy" and the price target for the analyst is $55. That really doesn't mean too much for us other than it can help give us a little push because that $55 could come years from now - or not.
You can see my entry in green and my stop is the yellow zone - if price closes down in the yellow zone it means that sellers are taking over control since the buyers held that line in the sand and our bullish trade is kaput.
My target is just shy of $45, maybe $44.50 or so, here's a longer view of the chart showing that my target is the next level of resistance above:
I bought a January 39 Call for $4.68. I imagine it'll take at least a month to get up to my target, but that's okay because we've got plenty of time. Now it's just time to remove all emotion and let this stock make us some profit - time for our treat.
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