Time to Play

Time to start playing this market.

I've been waiting for a confirmation from the markets to get in and I got it today. Here's what happened today in the markets:

First you'll notice that we're currently in an uptrend - i.e. higher highs and higher lows. The next thing you'll notice is that we're above the 50 day moving average for these markets. Lastly you'll notice that we had a nice little pullback and then a bounce off the 50 day moving average (or close to it) and the stochs are looking like they are going to cross up (i.e. bullish).

So, I did a ton of searching today but wasn't happy with anything. Either earnings is just around the corner, or stocks are hitting resistance with this big day up, or the volume on the option contracts aren't to my liking. So, I went with IWM - the bottom left market. I took a long call option on this because it's the laggard regarding the other markets. Notice the recent highs in each market and contrast them with where the price closed today - DIA is leading the market, SPY is just behind that, followed by the QQQQ, and finally our boy IWM (slacker).

So, I'm looking for the other markets to pull slacker-boy along. Here's his chart without all the markings:

I'm looking for price to get at least around 69ish. I'm thinking a higher high and a continuation of this uptrend. But, I'll let the markets tell me when to get out, that's just my idea for a target.

I went long September 63 Calls for $4.75. Not looking for a home run, just a nice base hit. I'll get out with a loss if we break below the 50 day moving average and below the most recent low. However, I don't plan on taking a loss, I plan on getting profit on this trade.

Game on, let that wheel spin Bob!!