© Copyright 2025 eOption, a division of Regal Securities, Inc., Member
FINRA/
SIPC |
Important Disclosures
950 Milwaukee Ave., Ste. 102 | Glenview, IL 60025
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of eOption which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
Options Disclosure: Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
eOption Commissions: Broker-assisted orders are an additional $15. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. A commission rate of $2.00 for equities and $3.99 + $.10/contract for options, per execution, applies to orders entered and filled by eOption's Auto Trade Desk and does not apply to customers who enter their trades directly into the eOption platform and are not utilizing the Auto Trade desk.
Broker Comparison: The competitor rates from published websites were verified on 05/25/2023 and are believed to be accurate, but not guaranteed. Commissions are subject to change without notice. At some firms, commissions may not reflect broker-assisted fees, orders over 1,000 shares, penny stock trades, OTCBB, pink sheet stocks or foreign stock orders. Firms may offer reduced commissions if additional criteria are met.
Blog & Commentary: eOption is neither affiliated with, sponsored by, nor endorses commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.
Trade What You See
www.oneoption.com
Often times traders are influenced by the news and by what they think it means. Just follow price.
PRE-OPEN MARKET COMMENTS THURSDAY – The market broke through key resistance at the 50-day MA and AVWAPQ this week. We need to see follow through buying the next two days and the week needs to finish strong. If resistance is still near the all-time high and if the market can’t assault that level, it will form a lower high and then we could see a more significant round of selling.
The rally from November through March was incredibly strong and those buyers are not going to vanish. The first dip was going to be brief and shallow. Bull markets die hard. It was a little deeper than I thought it would be and the recovery has been a bit more sluggish than I wanted to see. That is a sign of selling pressure.
We are long starter positions from the bounce and we added on the breakout this week. I am not ready to add to those positions unless we blow through the all-time high. If we can’t make a new high for the week, I might even pare the recent long positions that were added. This is a “plug your nose and buy” type of move.
This morning initial jobless claims hit the highest level in over a year. Jobs have been the cornerstone to economic growth and the last jobs report was “light”. GDP dropped 2% Q/Q and ISM services fell into contraction territory for the first time in over a year. I don’t like the backdrop. Higher for longer was fine as long as growth was robust. Now we don’t have that. If the Fed remains hawkish, Asset Managers will reduce risk. The market will make a lower high and then we could see a more substantial decline.
I am trading what I see and not what I think. From a technical standpoint, I need to see follow through buying these next two days. If I get that, I will stay long. If not, it will be a sign that resistance is building and that we might have a double top. The longer it takes for the market to make a new all-time high, the more likely we are to roll over. A breach of the 50-day MA could gain traction and if I see that, I will be ready to pivot to a bearish bias.
For now, stay flexible and watch the price action the next two days. This is a critical juncture. Support is at the 50-day MA and resistance is at the all-time high.
Content is provided by OneOption, LLC, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.