Let me show you what I am seeing in the American Express (Ticker: AXP) candlestick chart:
What is this information telling us?
Well, look how well that doji on Jan. 27 worked out.
Stock traded from $114 up to a high yesterday (Feb. 23) of $138.31.
Now, the new doji is signaling an end to this uptrend.
I will wait for the confirmation of an opening today lower than yesterday’s opening, which is the lower end of the green body of the candlestick.
If that happens, I am going to buy the Mar05 135/130 put spread and pay $1.30. That gives me 10 days until expiration
I like the short time frame because if AXP is trading lower, it will happen right away and I do not want to pay a lot of money.
I will take my losses if the spread trades down to $.85-$.90.
It Happened AGAIN!
On Monday, I recommended a call spread in the SPDR Gold Shares ETF (Ticker: GLD) after seeing the double bottom and the doji in the futures chart … And I was right again! GLD gapped open up $1.50, moving in the direction I predicted — but moving too fast — so the spread was out of my price range and I didn’t want to chase it. We will get another opportunity!
Yesterday, I sold the long BP Mar16 23 calls I paid $1.05 for on February 17 at $1.70 for a nice 61% profit.
BP could trade higher, but I am seeing a hanging man candlestick from yesterday, take the money and run!
Click here if you would like to view my Trading Record since Oct. 2020. Not too shabby for trading small contracts with short hold times!
Stick with me and you’ll be able to pay your credit card … IN FULL!
Thanks for Reading … See You Next Tuesday!