If you have strong feelings about how the week is going to end on Wall Street, then perhaps you don’t understand the situation. Although there was no bullish buying to speak of in the last five days, neither, evidently, was there any enthusiasm for dumping shares. The result was that the broad averages wedged a few inches higher, setting up a potential breakout that could see the Dow gain as much as 250 points ahead of the weekend. That’s how one denizen of the Rick’s Picks chat room saw things, although others seemed less optimistic.
Take a look at the chart. What’s your gut feeling? For our part, we bet the pass line with a small wager on some way-of-the-money call options in NFLX. (Thanks for the suggestion, Bachus!) A measly $60 bought as many as ten of them. This may prove to have been a lousy bet, but there’s nothing to inhibit the calls from achieving a tenfold increase in value if traders should get even a little crazy in the early going. Stranger things have happened, especially on Fridays, as we know. In any event, the naked sellers of the calls stand to make a whopping $6o if nothing happens. We’ll take the odds on this one. _______ UPDATE (Jan 25, 8:53 p.m.): The trade worked beautifully, allowing subscribers who bought NFLX 345 calls for as little as 0.04 to easily quadruple their stake. There was similar good fortune in CAT, where Pivoteers reported buying calls at the 137 strike for as little as 0.02 that subsequently traded as high as 0.22. (The highest actual exit reported was at 0.19, a more-than-ninefold increase.) If you are skeptical that such results can be achieved, please tune to the chat room some Thursday or Friday morning and see them happen in real time.
Inharmonious action towards breathe was engage all day but ‘towards the upside’ (buying was taking place), though the volume ratio was not.
Suggestion towards a longer move upward are in place, towards the 5 trading day low of the SPX will be a killer wave lower.
Saturday 12/22/2018 started the shut down, near the 12/24/2018 market low wave, as indexes rose during unbalance during the shut down.
The ending of the government shutdown may have a cause towards the affect when reopening.
———————–Observe Shortly after Trump’s inauguration in 2017, his chief strategist at the time, Steve Bannon words:
“deconstruction of the administrative state.”
Shortly after Trump’s inauguration in 2017, his chief strategist at the time, Steve Bannon, famously said that the new president sought the “deconstruction of the administrative state.” That effort is fully underway, as Trump keeps agencies chronically understaffed and unable to adequately enforce the regulations they’re charged with implementing.
What’s really happening, though, is more sinister: the weaponization of the administrative state. The industry interests and ideologues Trump has selected to lead major government agencies have both the will and the knowledge not only to gut existing regulations, but create new and lasting ones that undo protections that have stood for decades.
“The regulation industry is one business I will absolutely put an end to on day one,” Trump promised in the weeks before being elected president. At the time, it was assumed he was referring to Obama’s legacy. But his words should have been taken more literally. He had a much more ambitious goal, it turns out—a deregulatory crusade that likely will guide his next two years in office. Expunging that legacy will take at least as long, but its harm to human well-being in the meantime can never be undone.
,,,,,,,,,,most expensive home in the country sold in New York for $238 million.
Have a great day tomorrow Rick and nice weekend.