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Roundingtop

Take advantage of volatility spike: Sell puts.FUNDAMENTALLY COMPELLING BUY rated by the consensus +47% average target upside Morningstar rating * * * * TECHNICALLY: COULD BE REBOUNDING SOON? GG is down 35% since the intermediate top above $20 reached in early July This is 2.5X more than the consolidation in Gold (-13.74% since July) Such negative performance has brought a spike in volatility The stock has also just completed a perfect rounding top It has also been forming a consolidation base at 12.65 Too early to buy outright, as the direction in Gold needs confirmation However... ...OPTIONS STRATEGY TO TAKE ADVANTAGE OF VOLATILITY: SELL (SHORT-DATED) OTM PUTS FOR AGGRESSIVE TRADERS Sell 16Dec16 $13 put at $0.32/share (indicative) for a yield of 2.38% (54.32% annualized) FOR MORE RISK AVERSE INVESTORS Sell 21Apr17 $12 put at $0.79/share (indicative) for a yield of 5.88% (15.11% annualized)
G
by HAL9000
Index ready to pause before final dip?A BEAUTIFUL ROUNDING TOP FOR MR. TRUMP Index seemingly forming a nice, even rounded top (a reversal formation) What I particularly like about this one: It's nice and even It has been building for quite some time (4 months) It is built around a fresh historical high (this makes it more relevant) It completed yesterday a few points off the critical MA200 support It contains symmetrical breakouts (green circles) and breakdowns (red circles) on either side It completes at the end of the week and just before a major catalyst (elections) MOMENTUM: DOWN-PAUSE-DOWN The index is down 7 sessions out of the previous 9 Of those, the past 6 have been sequential down days We are now approaching oversold territory (RSI <30) but not dramatically Expect some "breathing space" ahead of the week-end Expect a break below the MA200 and rounded top neckline (2,082) some time next week If the support is broken, expect further downside NEXT LEVELS Potential rebound to 2,122 from here (+1.6%) Main support at 2,082 If broken, head straight to 2,074 and then 2,063 HOW TO TRADE Short SPY Buying SPY puts Buying VXX
SP:SPXShort
by HAL9000