Great Weekends Ahead...

I hope everyone has a fantastic weekend ahead of them. As always relax, reflect, and rejuvenate your self for a great week next week.

I was finally able to update Tuesdays video. If you go back to that post you should see it available. It was Revver's fault, not mine. Also if you ever want to watch them via YouTube, search for OptionAddict. You'll find a group page there.

Last but not least, I have archived the Marketcast. Go to

If anyone has any experience with creating a podcast/rss feed, let me know and it'll be on itunes soon thereafter.

See you Monday.


I got this e-mail from my new buddy Tim. He is teaching me cool things about technology.

He has a way that you can subscribe to the "comments feed" from this blog. The address is below, along with a few instructions. Good luck!

is the feed address for all comments on the blog. but, if you go to that link in some browsers, you'll just see a page with a bunch of xml code on it. you have to use a reader (like google reader, bloglines, feedreader . . . etc.) and subscribe to the feed. when your reader asks you for the address of the feed, the address above is what you put in.

also, IE7 has feedreading built in so if you visit that address in IE7 you'll see a nice looking page instead of raw XML.

hope this makes sense.

Jeff, That is pretty cool -Thanks. Hard Boiled Eggs! Oh and C&C are now famous on the CAST.
Bob H.

Hi all,

Ladd from Cedar Rapids, IA here. Fairly new to Jeff's blog page (2-3 weeks).

I will continue to enjoy this blog and everyone's comments and ideas.
If I have any, I will attempt to add my ideas as well.


Hi Jeff,

Thanks for getting the Marketcast archives on your blog. Now I can listen to them on my MP3 player. One suggestion: sort the archives by date with the current date on top.

Thanks for the blog and all the help you have contributed to us so far. It helps to know that there is someone out there givign us a helping hand.

Los Angeles


Boo hoo. We missed out on IIG and POT this week. I have finally unravelled that iron condor. Made a bit of money off of it, but it ties up a lot of cash. We were down 3% yesterday and 5% today. CG was up almost 50% and has given almost all of it back.

I feel like Jeff's picture over there on the right. Oooooo Scary.

I will rest this weekend and try to get myself back on track next week. I'm travelling a lot and will be in various hotels in the great beyond which may or may not have internet.

Oh, in case anyone's interested I met with the guy who's been trading for a living for two years. His bread and butter is selling naked 27.50 puts and 35.00 calls on ABX. He's done it for two years straight (with some variations) and only got caught out once. I'm going to talk to him some more, but he sells these things two or three months out. I think I like our directional trading better. Besides, where else can you meet such a great group of folks, and a scary-monster leader?

Good weekend to all.

Chris and Catherine

Josh, I could easily hook you up with an RSS feed for the MarketCast mp3's.. Email me at dan.martell (at) and I'll give you the file.

Love the blog!

C&C, I know how you feel but for ONCE I was in a runner (POT)! I was so dumbfounded I had to call the coach to know what to do. Feels good though and if I got one you are guaranteed, safe travels. Can you imagine what a 6-7 guy in a mask would look like! I am 6-3 and it would scare me. Jeff, trust me don't buy a mask like that and wear it around the kids.
Great weekend everyone.
Bob H.

Did you ever post your "scalping" systm for the $SPX ?? If so do you remember the posting date. I have been unble to find it.
Tonya W
daytona beach

Hi. I want to comment on stocks with low liquidity. Stocks that have volume under 500,000. have low liquidity, you become the market producing undo price fluctuations. I used to play the pink slips(penny stocks) there not even good for lunch money even if your on a diet. Buy options with high volume. Indexs are far the best reason, bad news can,t affect, crooked ceo's, market maker's ect. Any comment's

Take a look at the market forecast in prophet charts. $INDU, $COMPQ, $NDX, $RUT and $SPX all have clusters in the upper reversal zone. $VIX has a cluster in the lower reversal zone. The MACD is showing a divergence for all the indexes as well. There might be a bearish reversal in the near future. If I see a reversal candle formation I think I might buy a few puts.


I wanted to echo some comments from above and give warm thanks to everyone on the blog. I have been trying to read the blog as much as possible the last couple of months and find all the dialogue very educational and interesting. Please keep up the good work and have a great weekend!

Bob - I noticed the same thing on the market forecast and MACDs as well as the VIX/VXN (both at support)... Looking back at history I would say that next week (and possibly longer) should be pretty bearish.. But who knows with all of the earnings coming out....

I use the MFC heavily in my trading and that red line just doesnt not stay up in the reversal zone long...

Bob$ I"m positioned for the next week on the $vix Sell the 10.00 Puts.

Sorry about that I was the thirteen blogger on a Friday the 13th blog giving advice about Selling puts on the vix. Scary is't it. Empator cavet!

Bob and Craig,
I'm with you, I see a bearish start to the week. Have a look at PLCE. It may retrace a bit, but it's on a great bearish breakout and a bearish market will help a lot. Also, both RATE and LEG have retraced to their Fibonaccis and I think they're both poised to head lower.

I'm thinking about selling a bunch of April $105 puts on MA to squeeze a bit of cash into the account. Not sure if I want to do that if the market's going to head south for a bit.


Chris and Catherine.

Hi, C&C I hear you both about the start of this week . Just heard the news about the futures are up this morning (mon.) I'm sitting tight with rate, This stock bit me earlier last week when I enter it on the short side and started trending back up? I waiting for a another solar flare!

Hey Justin or anybody,

How do you use the market forecast as a buy/sell signal? I know a few folks use it but I've played around with it and can't find a method that works.


TRA...breakout, 3 pt move coming??

TRA...breakout, 3 pt move coming??

I agree with your assessment, Bob, but earnings is in a week.

Earnings are really pissing me off. I spent a good part of the weekend compiling a 2 page watchlist of patterns ready to break and 85% of them have earnings this month.

Yes Brett, I know. Earnings stopping me from a lot of good trades right now.

Keep your eye on GS, your hand on your WM coffee mug..

Looking at how things are going this morning I guess bear clusters aren't bothering the markets at all. Of course, the pullback usually occurs 2 or 3 days after the cluster.

Earnings, options expiration #@&*#! Who knows what is going to happen.

I stick with my cluster forecast. The markets are going to go down, sideways or up.

I'm with Brett. Earnings is driving me crazy. Every time I find a trade I like, earnings raises it's ugly head.

Brett, I hear you! My wife and I developed our list too and I think at least 85% had earnings too close to make the trade. Then there is that bearish cluster that held me from entering a couple long trades today. I have been looking at PLCE though. KLAC stopped out this morning which I was planning on closing...
The other Bob,
Bob H.

Being rather new to all of this, I am finding it pretty funny how the markets get manipulated... Citi groups profits drop 11% BUT it beats wall streets "estimates" which were lowered in anticipation of soft earnings and the stock (and market) goes on a big rally... If profits are down, isnt that a bad thing???!!!

Kind of like a real world example of what Jim Cramer was talking about in the video Jeff posted awhile back...

Financials are having a great day so far:
CME breaking a symm triangle. Earnings are on the April 23. The base of the triangle is 60 points. I will probabaly be long this very soon.


Hey, would anyone be willing to offer some insight on a trade I made on PCAR. I got in back on the bounce on 3/29. Still in the trade because I never found a definitive exit point according to my rules. Each day it just kind of slowly drifted down but never went below the previous low, which was my exit. So, two questions:

1) Anyone have thoughts on if I should have been out of this trade and what could have been the exit signal?

2) Any thoughts on what to do now with it. It's sort of coiling up here and my tendency is to hold on and see if it can push up any between now and earnings, as long as it doesn't break below the most recent low at about 72.75.

I'm still fairly new and these are the nuances of my trading plan that I'm still trying to put together. Any insight from you guys would be great.


If I may...

The long-term trendline is below where you took the bounce, but i see somewhat of a sym triangle on PCAR. draw a trendline down from the high to today and you'll see it's staying just below. A breakout above this line is very bullish. I wouldn't exit unless there's a close below $72 (the lower trendline and coincidentally your entry).

I like GS better than CME. GS is up on volume, CME is down on least so far today. Plus earnings on CME, as you all know..Also BWLD...


I too am still in PCAR. I too entered on 3/29. My goal was a higher high prior to earnings on the 24th. I’m a bit skeptical that it will make it there. However, since it has not made a lower low, as you stated, I am going to stay in until the 23rd and am hopeful an increase in implied volatility will increase my position more than the loss of time value if it continues to move sideways. If it makes a lower low, I’m out.


I am so excited you want to make a podcast! I am currently using Wiretap Pro to record the Master Talk so that I can listen while I jog.

Keep me posted once you get that podcast going!

~ Casey PHD Student

Tim and John, right there with you guys on PCAR. Hoping for the best, but prepared to bail if it makes that lower low.

I took the trade on CME on 3/30. I saw multiple entry signals, double-bottom, shorter term sym. triangle. Volume wasn't great that day, but it was the highest in a couple of weeks. Initial target of $560, which it hit today, but I think it will hit the high from 3/9 of $570, hopefully before earnings.

Joel R.


Did you take CMG on the bounce anticipating a breakout? Good price action today with no volume.


Yes John, i took the bounce. The volume will come. Look at the volume within the pattern.

I also got in on CMG on 4/12, and i grabbed some GS this morning...I am still in TEX, BEAV, ATI and X, and still short on FDS..

I also went long (small position) on GOOG on 4/11......

Those of you in TSL are loving it today! Anyone selling APR puts on GOOG?
Bob H.

Thanks Brett, John and Joel. That was the confirmation I was looking for. You guys are great.

Man, I remember sitting there with my finger on the trigger to buy TSL at the end of the day on 4/3. For whatever reason, I didn't. Hmm, let's see, would have been up $20 per share, or 42% in EIGHT DAYS??? Congrats to all of you who made the trade. For those of you who didn't, I'm feeling the pain with you.


I hear you on TSL. I had the order on the entered at the end of the day on 4/3. My buddy from work, who is an Investools student, walked into my office and suggested that it wasn’t optionable and to check something else out… What an idiot I am for not pulling the trigger. I did however throw the bone to my father-in-law. He is happy with it.


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About me

  • I'm Option Addict
  • 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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