New Trades for Monday: None Market strength on Friday has set up several of our model stocks for new signals as early as Tuesday. Whether or not these trigger will is dependent on price action on Monday. If it is clear that any particular stock will get a confirmed signal I will send out a special Alert sometime during Monday's trading. Remember, the July 4th holiday is Wednesday, bifurcating the trading week. Friday's CRUS Trade Here is an example of how the CRUS Sell Signal from Friday should have been implemented: Order #1: Buy to Open Sep $35 Put @ $1.45 (or, "Market Order"). When the above order is filled (should take 30 seconds or less): Order #2: Sell to Close Sep $35 Put @ $2.20 (for 50% gain) or: Sell to Close Sep $35 Put @ $2.90 (for 100% gain) Make sure that Order #2 is what is called a "Limit" order, i.e., you will sell the option only at the designated price. That assures you of getting the desired the percentage gain (assuming the option trades at that level). Especially for new traders of the system I suggest starting out targeting 50% gains, at least until you get the feel for how this very simple, but effective trading system works. That 50% could be seen in a matter of days, sometimes weeks, and occasionally months. Even if it is the latter, who cares? Fifty percent is fifty percent. After placing the above two orders, walk away and let the stock market do all of the heavy lifting. Some traders do not want to risk a trade going to zero (which could happen on any one trade). If that is the case, keep a "mental" stop at your maximum risk threshold and if you see the option trading at that loss level, then place the order to close out the trade. Never use a resting stop on an option trade. There are snipers out there who will find your stop and hit it just because it is there. TRADES TABLE CHART OF THE WEEK This is an Hourly (Short-Term) chart of Nasdaq showing a decline from the June 20 all time high into Thursday's low, then a Fibonacci 38.2% retracement coinciding with a (short-term) system Sell Signal on Friday. Our official trade signals are taken off of the longer term 2-Day charts, but longer term chart patterns always arise out of smaller term chart patterns, i.e., the theory of fractals.
