Hi Shoppers,

One of the most difficult things in trading is having patience.

Patience before you place your order.

Patience to wait on the confirmation the following day before your trade entry.

Having that patience when the stock hasn’t made the move you were expecting and just flails for a while.

It’s especially trying when a stock is trading at a pivot point, or near where you think support or resistance lies and waiting for the indication of which way it is going.

It’s all about patience.

But, you also have to be quick sometimes.

That’s why you have to have a trading plan for every single trade.

It pays to know your plan before you even set up your order entry.

That way you know exactly what you are going to do when the stock hits those prices you are looking for – or it doesn’t.

The prices where you will take your loss (hardest thing to stick to) and the prices where you plan to take your profits.

Have a plan, know your plan, and stick to the plan.

Always keep your eye on the charts, which will give you clues on whether your plan is working or not.

To summarize …

HAVE PATIENCE AND STICK TO YOUR PLAN.

Here’s my next plan …

General (Motors) Idea

Check out the General Motors (Ticker: GM) chart:

What do you see?

I see GM breaking out and closing over that red resistance line that goes back to early March.

Next resistance looks like $42.25 and then $43.

Looking at the options, the Sept. 09 calls are trading at a lower implied volatility than the Sept. 02:

The at-the-money calls, the 40.50s, are trading an implied vol of 37.91 in the Sept. 02 cycle and the Sept. 09 40.50 calls are trading an IV of 36.25.

That’s quite a bit of difference.

If GM opens and trades higher this morning I like buying the Sept. 09 40.50 calls.

Trade Review

So, the Energy Select Sector (Ticker: XLE) did manage to breakout and traded a high of $84.24 yesterday.

I hope you were able to make a profit on that.

If you are still in XLE on the long side, be aware yesterday’s candle could possibly be a doji and a signal of a change in that uptrend.

If it opens and trades lower, maybe put buying will be in order.

We shall see.

Thanks for Reading … See You Next Tuesday.

Licia Leslie