The news driven environment requires caution insofar as the market can take a deep dive at any time and for any unexpected headline, whether true or not. Taking that caveat into consideration, TMO (a new name for us) has etched out a highly reliable trading pattern for a bullish move to new highs above $530, but it is not yet confirmed. It will take a close above $490, which if confirmed will target $550-650. --------------------------------------------------------------------------------------- The December 18th $500 calls are trading at about $12. That sets up a reward of roughly 300% to 1000% within the target area. The risk is anything from 50% (stop) to 100% (no stop), as per individual choice. Since its last pattern recognition buy triggered on Sep 25th* TMO ran from $425 to $550, a 30% gain in six weeks. A similar run on this signal puts it at $650, and lands that $12 call at $150. --------------------------------------------------------------------------------------- Attractive Risk vs Reward *TMO was not on my radar at that time, thus not part of my daily scan. No credit for that trade is taken, nor should it be implied. Nonetheless, it was the same pattern that is unfolding this week.
