I am sending today's update out earlier than usual. As the market drops I want to keep everyone apprised of not only the new dynamic trailing stops, but also the new reversal prices. As always, interim trade Alerts as needed.
At a market top we are likely to see most of our trading models Long and the average option returns in both time frames approaching 100%. We saw both conditions earlier this week. Next, we would expect to see those option gains start to be banked when the trailing profit stops start kicking in. We are now seeing that happen in both time frames. What will come next?
1. Short-term stock models triggering Sell Signals, then,
2. Intermediate-term stock models triggering Sell Signals.
With this progression we can see an entire stock market cycle unfolding based upon specific trigger points being hit within our trading system. Imagine the ramifications of that kind of timing based on our trading strategies. The triggering of the option trailing stops will be a precursor to transitioning of cycles from up to down and back to up again. All because on one tweak in our system.
We have had the following indiviudal stocks take profits in the past few days:
Short-term: FB calls out at +151.45%; VZ calls out at +200%
Intermediate Term: SPY calls out at +50.10%; BABA calls out at +141.45%. (This BABA profit is after taking +300% in June calls and +183% in April calls). If you took the BABA trade and subsequent rollovers from the Jan 6, 2017 Buy Signal, you are a star.
Many subscribers did not take these trades for fear that the market rally could not continue. I know this from emails that asked "Is it too late to get into this trade." Now it is. However it's not too late to believe in the system.
Next Update: Saturday (Interim Alerts as needed.)