CME & SHLD

Last night I used CME as an example for a bull put spread. Today it has sustained a $20 point move. I just wanted to clear the air that if you ever anticipate this big of a move...it might make you wish you hadn't traded it at all. Sure you made money, but even an aggressive trade yielded a $3.15 credit...which is minimal compared to a $20 point move.

Also keep an eye on SHLD. For you long term traders, check out this ENORMOUS cup and handle pattern...
If you are not familiar with this pattern, run a search for it and you'll find plenty of resources. But the formation here is textbook. A classic trend continuation pattern. Something for the watchlist perhaps? One could place a trade here up to resistance, or wait for the pattern to confirm by a break of this over head resistance. Perhaps trade both?

Hi Jeff,
I am familiar somewhat with the cup and handles but really don't know much about them. What is the right entry point on these things?

Hi Jeff,
I am a little familiar with cup and handle formations but not a lot. How do you determine an entry point for this formation?

Erndog

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  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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