Contrarian Stock Market Commentary
Contrarian Stock Market Commentary for January 24th 2013 shows that t
he S&P 500, Russell 2000,
Retail Holders are extended and poised for a pullback. The candlestick chart pattern on the stock chart clearly showed some sellers coming into the market.
You seem to be very clear. I´m new to trading mostly active in options buying Put/calls. and interested in your analisis.
regards
Adrian
Adrian,
Thanks very much for the feedback. The suggestion that I have for new trades who decide to trade options is to challenge yourself with this question. Prior to going long a put or a call ask “What edge to I have over other traders?” Perhaps it is a divergence you have identified or that the stock has reached either extreme overbought or oversold levels. If you can answer that question easily prior to entering a trade it can go a long way towards profitability.
Regards,
Bob