Imminent Reversal

So it has been a couple of weeks and I have news to report. There is an imminent reversal about to happen. And I apologize about not mentioning this earlier, but I do get busy, as an example to a family member about the power of options I bought an option position on FPL. I will talk about that also.

So what we have is that the Stochastic and MACD daily technical indicators for the major indices are in the over bought range. But if we look at the same indicators for the weekly chart we see that they are declining from the over bought range. What can be expected from this is that the indices, and any stocks with similar situations, will stall out and test recent bottoms or blow down below them for a little bit.

Now as I have been testing my programming skills in creating a program that predicts these changes in movement and provides suggestions based on an investors risk level I have been introducing what I know and learn to family and friends. Well a discussion about stocks started up and I showed this family member NG. and how much profit it has made so far. He was impressed and so I showed him FPL since it it one of the stocks I regularly watch, and it had a triple threat signal for a bull trader. (Candle stick, Stochastic cross, MACD cross) With that I showed him options and what the power in that is. I actually bought the FPL IK option earlier that day. I then introduced him to paper trading. So he is pumped.

Now for the bad news. I saw that FPL was slowing down yesterday and I wanted to protect some of the profit I had made in the past few days. So I set a stop at 3.20 per contract-share and it got taken out at 3.00 per contract-share. Since I got it at 2.75 per contract-share my profit is .25 per contract-share or 9%. What I haven't mentioned, and I won't, is how many I bought. Lets just say the minimum is 100 shares per contract. So you can multiply the numbers mentioned by any number of hundreds.

What I am looking at now is waiting a couple of weeks to see if the prediction I mentioned at the beginning of this article comes to light as I am expecting.

That is my opinion, you can take it or leave it.

Disclaimer: See bottom of page.