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What Do We Do Now?

September 21, 2023 by JC

The US Stock Market is mostly one big fat mess, as is perfectly normal for this time of the year.

So no surprise there.

You can catch up on our reasoning in this short post.

But the bottom line is that we’re now well into month #3 of this correction, since the new 52-week highs list peaked back in July.

The fact that markets are a mess is not a big deal. The bigger question is more about how long it will take to resolve, and which stocks are holding up the best during this seasonally weak period.

We discussed some really interesting setups during our LIVE Conference Call this week.

But today I want to focus on a space that is acting way better than the rest of its peers: Cyber Security.

While Tech stocks have generally been struggling since mid-summer, take a look at Palo Alto hanging in there just fine: [Read more…]

The Short Report (09-20-2023)

September 20, 2023 by Alfonso Depablos

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as “a market of stocks.”

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

Now, we’re also highlighting lagging stocks on a recurring basis.

[Read more…]

[Options] NextGen Going Next Level

September 20, 2023 by Sean McLaughlin

Future market leaders for the next bull run in the stock market are revealing themselves now. And today’s trade is in one of the hottest sectors of the moment – Energy.

Understandably, one look at this chart of NextGen $NXE might scare away the more timid equities traders among us who might fear a pullback after chasing an incredible run since the beginning of the year:

But their fear is our opportunity. Sometimes we have to do the hard things to earn big profits. Fortunately, we options traders can position ourselves with clearly defined risk while enjoying the potential for leveraged and unlimited upside if we get it right.

Here’s the Play:

I like buying $NXE February 7-strike calls for approximately 60 cents debit. This debit I pay today represents the most I can lose if there is no follow-through for this stock.

That said, if we don’t see any action higher and our calls are out-of-the-money on November 1st, then I’ll look to exit the position and wait for a better setup. Additionally, if I lose 50% of our premium (at any time) during my hold, then I’ll also look to exit to salvage what’s left of the premium.

In the meantime, if neither exit criteria are met, then I’ll continue holding these calls all the way into the month of February, shooting for the moon.

If you have any questions on this trade, please send them here.

If you missed last week’s video Jam Session, you can catch a replay on Stock Market TV.

~ @OptionsSean

P.S. We do trades like this regularly. If you’d like to leverage Best-in-Class technical analysis into smarter directional options trades, try out All Star Options Risk Free! Or give us a call to learn more: 323-421-7991.