Before the Open (Oct 26)

Posted on by Jason Leavitt

Good morning. Happy Monday. Hope you had a nice weekend.
Dare my sentiment be to the downside right now???
The small caps are lagging the large caps. Here’s a chart comparing $SML to $OEX.

The internal breadth indicators didn’t support the most recent move up.
While most indexes made higher highs recently, the Russell did not. Here’s a chart comparing $SPX to $RUT.

The dollar is still trending down, but the odds of at least a temporary move up are increasing. You guys know when I have “too many” stocks on the Long List, the market tends to temporarily top out. Well right now I have too many commodity stocks which no doubt benefit from a weak dollar. Perhaps this is a sign the dollar is oversold and due for a bounce which would most likely would push the market down.
Proximity to key levesl (Dow 10K, Nas previous support, S&P a significant moving average) tells us to be more cautious.
The market’s reaction to earnings season was positive until this past Friday when AMZN and MSFT did great, but the market sold off anyways.
All longs have very short leashes. On the short side, my preference is the ETFs or inverse ETFs. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s Sector Performance
this week’s Earnings Reports
this week’s Economic Numbers

0 thoughts on “Before the Open (Oct 26)”

  1. I am confused on how the Naked Options Traders functions.
    Format Employed
    Trading Instructions or Format
    Under what Name (Leavitt Bors. or N. O. T.
    Please enlighten me as I am ready to go
    Al

  2. Hi Al,
    Consider NakedOptionsTrader a completely separate and stand-alone service.
    But it’s much different than Leavitt Brothers in that you don’t need to log in to get the information because it’s sent to you via email. When there’s a new trade alert, it will be sent to you.
    Being an LB member, you can continue to log in to LB to see my reports and the message board/market window if you wish. But technically logging into LB is not part of the NOT service – it’s only available to LB members to help ensure a smooth transition.
    I know there’s some confusion…NOT has not done the greatest job explaining in simple terms exactly what to expect etc. I will review the site and make sure mike posts a simple FAQ section so traders are not confused.
    Jason

    1. Jason,
      How quickly will these option trades need to be made after the alert is sent out? (I’m busy at work and don’t always have quick access to a computer). Is there any automatic trading available, where you send your alerts to an associated account that auto trades them? I’ve seen this choice with other services.
      Thanks,
      Roy

      1. Ray….we are working on an autotrade option where you won’t have to be in front of your computer.
        You’d open an account with a particular broker, and then when we send out an alert, we tell that broker to execute the trade on your behalf.
        It will probably take til the end of the year to get this all set up.

Leave a Reply