[08/13/2018] Trading Recap:
Hey, what's going on everybody this is flu gil trader jeff author. Of the book trading, part tony moore i teach people how to trade stocks bonds. Options. Forex. Crypto. Currency today. Is monday. It's a brand new week august, 13th. Welcome. The, fur guild show. Everybody. Welcome. To the show it seems like it's been forever I couldn't, do that well actually I did do this show it's, on Facebook fated. To show Friday on Facebook, I wasn't able to post it on my blog still, figuring out how to take. The live video from Facebook, and embed. It into. Another website have, a little difficulties, but anyway it's, a new week so. What we're gonna do is we're gonna grab our new index card today's, Monday. It. Is August, the 13th. Okay, last. Week we were up over twenty thousand, dollars, it was I think it was last week it was around like. $24,000. So, last week we made, $24,000. But today we gave some, back. Ok. So let's. Go take a look at the account really quick before, we get into the show, alright, there it is everybody. Today. We, were down, one. Thousand. Six. Hundred seventy one. Dollars and. Fourteen, cents, yep one thousand, six hundred and seventy one dollars and fourteen cents now, the market, got beaten. Today so actually. That's. Nothing, compared to the market and had it not been for our protection, we. Probably, would, have got beat a lot more, okay so good, that's what that's. What you, know knowing how to trade options and. Knowing how to do defense, okay so you see. 1671. What. I see, is it could have been down 10 or 20,000, dollars have, we not played defense, okay, look, I've got people pose and stuff everywhere, so. Super. Exciting, yes, we were down today but again no big deal because again the portfolio, has a combination of long term trades, short, term trades and our, short term trades we, got out of those last, week protected. All our profits so today, on, the short term trades, we. Didn't take any, hit, okay any hit whatsoever, so we're, looking good all right everybody what we're going to do is we're going to jump into the show we're gonna do our analysis, our market, posture, we're going to look at some of the trades that we got filled on today cuz we got filled up some good vertical, spreads so, this is where I bid you farewell if. You want to watch the rest of the show go to the blog because that's, where the shows gonna be alright everybody so. Hopefully. We'll see you on the blog pretty soon if you want to learn how to trade, options, forex. Everything. But we're gonna get into what. Happened. In the market and what happened our account everybody until next time I'm triggered, Jeff author. Of the book trading, part-time, or I teach people out of trade stocks bonds options. Forex. Cryptocurrency. Alright we'll, see you in just a minute inside the blog. All. Right everybody welcome to the blog again those that aren't here, get them out of here this is only for you who. Are dedicated. And you want to learn about the market so let's. Jump in today okay. Okay. So, what we're gonna do is we're gonna go through our analysis. We're. Gonna look at some of the trades we got into today but I will start off by analyzing. The S&P, 500, have you noticed that that big red, candle, okay so. The sp500, today, was down, 11, points. 0.4. 0. %, okay it, was down big today but. It's forming, a beautiful. Bull flag ok so again nothing, to worry about I see that picture all the time and I'm getting ready for what's coming the. Dow Jones was. Down a hundred, and, 25. Points. So. It's been down the. Last, four. Days, ok so we have this nice up run, move. We've given it all back. So, down. 125. Points, today. Ok. 125. Point 4 for today. All the, indexes were down the Nasdaq, was down the S&P 500 was down the, Dow Jones 30. Was down the Russell, 2000, was down the, VIX, the. VIX, was, of big, today, up, 12%. Ok, again. That's the fear index that means people were buying protective, puts on, their, SP, Y position because, again you do that when, the market is going down we. Bounced, off support, a couple days ago and it's just been going, up. Going. Up going up if. We look at the sector you know before, we look at the sector's let's. Go ahead and do our long-term, posture. Review ok this is how we start off our day all. The time we look at the, sp500, and. What we want to do is we wanna look at our long-term posh. Intermediate-term. Posture, we want to see if we have posture, permission, and we want to look at our short-term posture, so, looking at the long-term posture. This line is above this line so it's the exponential, moving average 10 and, the exponential, moving average 40 when, that blue line is above the red our long-term, posture.
Is Up. That. Means we have permission, to take, long, term. Bullish. Trades okay, long, term bullish pips. Let's. Drop down to our intermediate, term. Timeframe, this is any trade that lasts between four, weeks and nine months the, direction, of this line okay, so today, the line was, 270, 210. 270. 197. So this is going. Up right, it was 292, 71, to, 72, so, the direction, of this line is. Going, up, and so, when that line is going, up our. Intermediate. Term posture. Is up. Now. That, was on the weekly. Guys. In catch that we need to change it to daily so scratch, what I just said there's noise in the background threw, me off so, what we got to do now is we got to go down here to our daily, chart, before. We're on our weekly that was our daily but look the picture is still the same this. Lines going up so our intermediate-term. Posture, is up. Okay. Now let's, look to see if we have posture, permission, okay, so our intermediate-term, posture, is up, that. Means we can take full, positions. On our intermediate, term trades now, this green. Line is still in the upper reversal. Zone so that means that we do, have. Posture. Permission. Yes. So number one is we're allowed to take intermediate. Term trades if we see reversal. Patterns and because. Our intermediate, term, posture, is up, then. We have permission to take full. Positions. Right so, we can take full positions so again this, down bay doesn't. Affect it whatsoever we can still take a long term trades we can still take intermediate, term trades only guest place full, position, order okay pool position, oars so, let's drop, it down into the short-term. Time frame okay. I'm, gonna go here to the three months because what we want to do is we want to look at the highs. And the lows right short, term posture, is whether, we are allowed to take short, term positions, any, trade the lasts between two. Days and four weeks our ATR. Trades right, our, ATR. Trades are our, short-term. Trades, our, intermediate. Term trades are our vertical, spreads, our, reversal. Patterns okay. So. Today. Now. I, have his green mark because I had. Profit, today on my covered call so, I had a covered, call for protection and income. And I hit my target today and made over. $900. So just because my account was down I still. Made, money, on my option. Defensive. Strategies. Okay but. This. Box this box in this box in this box so these are equal lows heavy, higher, high, this. Low hasn't formed yet so our short-term posture. Is what it was on Friday what, it was on Thursday. And. What it was on Wednesday our short-term. Posture. Is up. To. Neutral or, bullish. To. Sideways, whatever you want to call a bullish, up same thing neutral, sideways same thing and the reason why it's sideways is, because. We have equal, lows the, reason why it's up is because we have a higher high so, what this means is on our short-term trades, we're allowed to trade. Half. A position, so, if we see any ATR, trades, were allowed to trade half, a position. So, if our normal risk is. $1,000. Or let's, say four, contracts. Or allowed to trade - if, our normal, risk is ten contracts. We, can only trade five, get, me here okay, so, that's where we're at so now really quick what I want to do is we got field on a couple verticals, today we, got field on mo. So, let's go here now during the day. Wait. Did we get filling em oh yeah. Right there at the end we got filled on hang. On. Yeah. Right, there at the end we got filled on em oh okay so, we entered into a vertical spread on em oh right here, and. Again, the reason why is we, look at the end of the day and I went live to down Facebook, and I placed, these. Trades, this one didn't fill but. It filled when this show whenever I got off of the air so, right here it went up pulled. Back I love, that bull, flag I did, it vertical, spread. Okay, and a vertical spread I sold, the. 57.5. Put and the, 50 I bought the 55, put so. 57.5. And, I, bought the 55. Okay, so this, one was the just make this red let's. Make this blue. Okay. All. Right so, what, I did was I sold this strike so this price can go down over two, points, and, I'll still, be. Looking great, in this, trade okay so this, is my vertical, spread so, I'm gonna right click and, I'm, going to add it, to my. Holdings. Vertical. Spread okay, so I got in MO, today, on. A vertical, spread I also, got an EM Ghent, and, SPG. So. I got in on em gen on a vertical spread right. Click Add to hurtings. And. I also got into SPG. If you want to know more about that go.
Check Out my facebook. A lot in the training part-time group, it's. Already posted, it was, live but, all this is in the trading part-time group so right now verticals. We. Have houses. We have Microsoft, we need to erase some of this we don't have microwave do we have Microsoft hang on vertical. Spreads no, yeah we have a cost. Though Microsoft a oh my bad so, we're in right now five. Vertical. Spreads, we're in Amgen. We. Are in Costco. We. Are in. Altria, we. Are in. Microsoft. Looking, really. Good, well now and we're. In SPG, so, what I'm gonna do is again this is one of my accounts. I got, mini, Counsel this is the one that I try to do for this class okay, so. I'm gonna go yeah, it was a three hundred forty nine dollars in the Forex today so. Right here, let's go to our Amgen, we're. Going to move it to our. Credit. Spreads let's. Go to SPG. And. We're going to move it to our. Credit. Spreads let's. Go to mo. We're. Going to move it to our. Credit. Spreads okay so we have all these credit spreads going on we have five hey let me turn this phone down guys this message will keep popping, up okay. So we have one two three four, five, vertical. Credit, spreads going on right. Now we have two option, trend trades today. We were down $10. Stuff 39 days nobody deal. Okay. Today. And we got stopped out we got stopped out of our synthetic I told you guys on the Facebook one today we got stopped out at the very beginning of our, synthetic, stock but, it was good because look price continued. Down, so. We got out thank goodness and then press kept going down so we are out of gold, on the, synthetic stock we still have three hundred shares, of gold, up here okay. Three, I don't have a protective, put that we made 64 dollars today just. Like spy today we made seven hundred and ninety seven dollars. Just. On our covered, call okay, so we made money on our protection, we took a hit, on our long term positions, but we made money on our protection, right okay, I mean again look gold. Was down four, hundred dollars today. Okay. But. We made 64. On our protection. IWM. We made $28. On our protection, we have 200 shares so we were down but we made money sorry. You know what guys hang on one second here let me out of this Facebook, group because, people keep chatting chatting, and chatting chat. Just. Close out of there okay. The, more message it will pop up. Okay. And so, if, you look at Excel P same. Thing we have a hundred shares with sold a cover call we made money on the cover call the VIX which, is the opposite, of the S P Y we have a hundred and fifty shares we made two hundred ninety four dollars so, today, on protection, we made almost two thousand, dollars so, had we not, had the protection we, only got hit hard. But, that's what the protections, for look I got filled on all these orders today even. Some Forex, positions, right. Right, now I'm in the, Forex. Position, down. Here, the. Aussie, Canadian, dollar let's go take a look at that really quick, this. Is not the Forex class but hey, let's. Go take a look at it the Aussie Canadian dollar. Ok, sorry about that we're bad guys so. Anyway you, know we got us some Forex, positions, going on here so if I go through my watchlist, really quick in my Forex, positions, just. Trying to look for setups, this could be a good setup not, today but upcoming. Euro. United, States dollar again euros been down strong, today today we got in the British Pound United. States dollar oz. And Canadian, dollar broke back up again just looking for specific, setups. Japanese. Yen British, Pound maybe over the next couple days. Down. Down, down, I'm in this position guys I'm in the Canadian. Dollar to the downside, so weakness, and the Aussie looking. Good I protected. A bunch of profit, Aussie. Japanese, yen see. If it closes back up here, we, could do a buy, stop I'm. Gonna do right now buck could, do a buy stop on, this position, you. Know yeah. The. Fork so we were up three hundred thirty nine dollars today so in reality we were really only down about 1200, today in this account but you, know we have short-term permission. Indexes. We're down only two sectors, were up today utilities sector and. Health, care sector, so. Let's. Go. Right now through our watch lists we're in a three-month chart and this is what we're gonna do we're gonna go to our at the gates cuz again we've made all the adjustments, we don't have any short-term, trades going on or. ATR, trades so there's no adjustments, there we've, already looked at our kind of our core holdings, in this portfolio you. Know we've looked at our credit. Spreads everything, so now since, we're done with our routine we're done with our posture we. Need to go find some positions, so.
Let's Go to our advocates. Bull flag, okay. This is the one we got into today so it's no longer at the gates I'm going to delete it this. One is not. At the gates anymore at the gates means that it, either has, a setup or. We will see we see a set up in the next couple days, okay. So I'm, gonna erase this one. Disney. Right. Here, did we get filled in to Disney today. No. We did not get filled in this, is more of an equal, low okay. See this more. Of an equal oh this is no longer a bull flag so I'm gonna delete, it this. Could be setting up in the next couple days so, I'm going to leave that this. Right here Johnson, & Johnson, did we get in that no okay. This could be setting up in a couple days. What. I'm doing is I'm like I said I'm deleting the ones that we got into today. Merck. No. PG. Procter. & Gamble, did we get in Procter & Gamble today no. Okay. This is a potential, so, let's leave that there. SPG. We did get into that one. Verizon. No, we didn't get in that one okay. So now we're gonna do is we're gonna go to our. Let's. Go go, onto our watch list so we're looking for bull flag setups and then when we get it see this is a good, one we don't have this set up yet but, I'm gonna right-click it and I'm gonna add it to the at the, gates bull flag because. It's forming. A set up but it's not there yet okay. This. One right here no no. It's. Right at that mark, this. Is you know what at. The gates this, one looks like a good. Potential. ATR. Trade these two lines are going up pulls. Back higher high boom. You. Al this, is a nother, potential. At the gates it's not there yet, but. At. The gates, okay UMP, no. Okay. So. Now let's go to exhale B again let me move my book out of the way I'm. Just gonna fly through these guys. Could. Be forming in the next couple days so right-click. At. The gates. No. No. PPG. Nope, nope. That's. A bear flag so yeah beautiful. Bear flag but, since our posture is bullish. I'm. Not gonna look at Bear Flag trades today. I'm. Just going through my watchlist. Tential. Almost. Potential reversal pattern. Which. We would have permission to take that because we have permission on our intermediate.
Term Trades but it's not there yet. Can. I'm just flying through looking for specific. Setups, okay. That. Could be a setup in the next couple days. Brookshire. Hathaway. No no. That. One actually got crashed, through support, equal. Lows no oh. Oh. Yeah. This is what we do it's, going to our watchlist going through a watch list looking for setups. Where I'd to the beat, GE. If you notice my eyes are zone right there in that right, edge okay right. Edge is where my eyes are zoned. On, looking. For, setups. To take until this. Could be. It's. At face book so we might end up having a reversal, over the next couple days but, now right now okay, wait, go back, right, here. HP. Q hewlett-packard, right, click Add to, oh it's. Not there yet okay. There, we're. Already in that trade so we're not going to enter that again, under. Support, that's not we're looking for okay. So. What I'm gonna do is I'm gonna delete these and I'm gonna add this to at the gates okay. We. Already hit our target, but, this could be setting up for another. Bull. Flag trade, a sending. Triangle, or in this trade but already. In that one no it's a longer the tooth we already got in that trade today nope. Right. Here PG. Yeah. Right click at. The gate this is a good ATR, trade, down. Nope. Nope. Right. Here, kind of more of an equal oh hey. EP. Nope. Nope. Nope. It's. Going through our stuff and. That's. All we're doing we're. In that trade already being. Wine again, this class is more about just going. Through the watchlist taking you through my process it's like I do my process, anyway might as well do it live in the, show Merc, oh go, back we got a pennant for me let's know we like. Mikey. Maybe. The next couple days so right click at. The gates again, there's no setup yet but we could have a setup in the next couple days. So. Why that's, it so, now what we're doing since we went through our watch list now. We've got to narrow this stuff down. Okay. Okay. So, now let's go to our at the gates at the gates bull flag, okay. So this is let me erase these lines, this. Is setting up it's not there yet, Dallas. Not. There yet or Delta, not there yet not. There yet, right. Here we, tried a vertical, spread on this trade today, you. Know think we had enough juice not yet, go. Back right here this. Right here could be an ATR trade so. Let's. Take our piece. Of paper and let's check it out really quick we're gonna see if this is a. Trade that we want to get into, so, our ATR, let's look at. 172. Is the high point. Six two plus. Our filter. Plus. The ATR, 311, that's 175. Ninety-three. So what's this high highs. 174. Okay, so this doesn't qualify after. My calculations. One ATR. Which is down here says three dollars on eleven cents that's the average true, range so. When I use my filter. And, I get my entry, price I'm gonna add it to the ATR, if, that number is above, this. High, that's. A no good trade I can't, take it okay, so PG, we're gonna do the same thing let me erase these. Lines because we hit our target already, before, so now we're not in this trade anymore so. Let's do the same thing I'm. Gonna take the high which. Is 80 176, and I'm gonna add it to my filter, and, then what I'm gonna do is I'm gonna add. The. ATR. Which is 102. Okay. So let's, do that the. High. Plus. My, filter. Plus. The ATR. 102. That's. 82 98. So the high up here is. 83. Okay, good so. I'm. Gonna place an order right, now an, ATR. Trade, for, this okay I see, this bull flag that's pullback it's beautiful, so, the next thing I want to do is well let me write that one down, peih-gee that's. Good to go let's. Look at you al you, al could be setting up in the next couple days but, it's not there, yet. Close. Okay. And then Verizon, not. There, yet but close so. The trade that I like. That. I am going to put a order. On, right. Now is P, G, Procter. & Gamble so let's go take a look at the option, chain because let's. See if we have any juice in this train so there's five million, shares traded today that's. Good. What. We're gonna do is we're going to look, at the. 39. Strike, okay so this means there's 39 days to expiration now this trade lasts between really, the, average on this trade is between two to five days so. It's a quicker term trade it's not a day trade but could be but, it's a quicker term trade so, let's go look at the option, chains we're, gonna look at the call so we're gonna look at the calls because we're bullish, on this.
Okay. Good so, we got enough juice so let's go ahead and write down our orders, right, now so this right here is PG, 8, TR, the. ATR, is 102. Entry. Stop. Target. And. Risk. Okay. So. My entry. Into this trade, is going to be. Eighty. One dollars and. 96. Cents. Okay so my entry, is. Eighty, one dollars and 96. Cents. That's my entry, into this travel momentum. To, go up now, again I'm placing this in the real money account okay, so we're doing this together this is an ATR trade, option, trade real money my, stop-loss is 81. 96, and I'm gonna -. The. ATR, so. The stop-loss is $80. And 94, cents 180, are now, my target is -, a trs-80. 196. + 102, +. 102. That's. 84. Exactly. Okay, that's. When I talked to a TR, now. We are allowed to take full. Well. Half a position remember we're up to neutral so we can only take a half, a position, which means we're gonna be risking. $500. On this, trade okay, watch this so if we go back here really quick to let's go take a look at our other. ATR. Trades that we weren't let's see here these. Are our short-term what. Was it at let me go take a look right here. That's. What we're looking at right now. Rison. Okay see like we did for contract. Here so. We did four contracts. On Verizon. A while back right and so. What we'll do is in this particular case, the Delta that we're gonna get into is, going, to be a 40. Delta. Which means for every dollar move, on a stock it, represents. 40. Okay, 40 bucks, so, what we're doing since, we are in. This particular case, we. Are looking at PG, the, 80 ours. 104. Okay. And so, the stock. Has to move down. One. Dollar and. Two. Cents now. Forces, and if our Delta. Is, 40. That means it's gonna go down about 80. Okay. So it's gonna go down about 80 and I take $500, divided, by 80 that. Is six, okay, it's, actually five points, something so this is what we're gonna do when we're allowed to take a half a position, we're, looking for a delta of around 40, we're gonna take five. Contracts. Okay so, right here I'm gonna edit it risking, 500. I'm gonna put five. Contracts. If we, were doing full positions, we would take ten, contracts. So, this is what our trade looks like so we're gonna go here to trade, 39. Days I'm gonna go right here at the 82.5. Strike, put the 40 Delta I'm gonna right-click it by, custom, with Osio, bracket. Osio. Bracket, and I'm gonna do one two three four five position. Hit that little, thing locks. It up and then, I'm gonna go Market Market. Market. Actually what I'm gonna do I'll show you here in a second watch this so, if my entry, is 80. 196. And the price of the stock is 81 52, that. Means 80 196. Minus. 81. 52. That's 44. Cents, so let me go ahead and edit it that, stock has to go up. 44. Cents. Okay so, what is this option gonna be worth I'm, gonna go back over here to my option, chain and I'm gonna go to what's, called the theoretical. Price I'm. Gonna reset, and I'm gonna do this as of tomorrow so. If the stock goes up 44. Cents. Then, this option, should be worth a dollar 25. I'm gonna give a five-cent, filter, at 1:30. Which. Means I'm going to place my order right here 1:30. That means if it's above that I, don't. Want to get into the Train I'm not gonna let the market maker Jimmy so. I'm gonna go back here and I'm gonna do at or. Above. Okay. At or above and, what was my entry, 81. 96. So, admirable. Eighty, one ninety. Six. That. Means it has to go up 44, cents and then, as long as it's not worth more than a dollar 30 it's gonna get you in my, stop-loss is 80. 94. So. What I'm gonna do is I'm gonna go at or below. 80. 94. Target. 84. Dollars even, at. Or. Above. 84. Dollars okay. So, what we got is, we've. Got, 81. 96. Entry. Stop. At 80 94. And. Target. 84. And, we're going five contracts. So. When, I confirm, and send this this. Says that we're gonna buy 5, PG. 100. September, 21, 82.5. Calls. At a dollar 30 if the Margo's ad are above 80, 196. We're, gonna sell those five calls, if, Mart goes at or below 80, 94. Okay. It, says triggered, by Oh CEO number one so this has to fill before this becomes, active. Then. We, are also going to sell those five P G's September. Eighty two point five calls. Triggered. By order number one, if, it goes at or above eighty four that's my target so what we're doing is we're just double-checking. My. Targets 84 my, stop is eighty ninety four my injury is eighty one ninety six one, thirty confirm, and sin. So we have this order pending for the morning so when I do my morning routine tomorrow, Facebook, we're, gonna take, a look at this to, see if we are getting. Gypped. Right, so. Holding. Short-term, right now we're out of these short-term, trades so let me erase these short-term trades we actually are in no short-term trade right now okay. We're. In a lot of vertical spreads we. Got stopped out of our short-term, trades so, we're not in those at oh good. That's, it we got that order pending for tomorrow five, option. Contracts, there's a lot of money to be made in, those five option, contracts.
Okay. That's it guys so that's, what, we got going on again today we were down about 1500. 1600. Dang. We got filled some nice vertical, spreads I did those live on our Facebook group at the end of the day so make sure you join our trading part time Facebook, group cuz I go live a couple times a day the, morning routine looking at the open seeing, what's happening like, basically around that two o'clock because that's where I look for my vertical spreads and then this class where I go through the whole nightly routine okay. Sounds. Good alright I'm waiting until next time this is fluke Yale trader Jeff, author. Of the book trading part-time or I teach people how to trade stocks bonds options, forex. Or. Cryptocurrency, aren't, that buddy, see. You hopefully God willing tomorrow peace.