© 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.
Follow the Technicals
www.oneoption.com
If you are trading the headlines, you are missing these moves.
PRE-OPEN MARKET COMMENTS MONDAY – Negative headlines are a major distraction. If you get your information from social media, I can’t recall a time when the sentiment has been this bearish. I don’t know if this is sensationalism to get more clicks or if “gurus” actually feel this way.
The technicals are all you need. I mentioned last week that all moves below the EMA 8 have been buying opportunities the last six months. The dips have been brief and shallow and that is bullish. I don’t have to rationalize why the market is going higher, I just need to position myself on the long side.
This is a week of busy economic releases. Official PMIs, ISM Manufacturing/ISM services and all of the employment data (ADP, JOLTS, Challenger Gray & Christmas and the jobs report) will be released. Even if these numbers come in weak, I don’t believe they will lead to a big market sell off. That will only strengthen the odds for another rate cut or two this year. If the numbers are good, investors will rejoice that we are not going into a recession.
Seasonal weakness will shift to seasonal strength in a few weeks. Asset managers do not want to miss this move. If they have been waiting for a dip and they are under allocated, they will bid more aggressively with each passing week and the odds of a dip will decrease.
A government shutdown could happen and Trump seems prepared to play hardball. He wants to lay off government employees and this will give him a reason to. These events have not historically lead to big market drops because they always get resolved.
My comments sound very bullish so let me splash a little cold water on this. If we had a pullback in August and September I would be much more bullish than I am now. That drop would have provided us with a much better entry opportunity and the bounce would have fueled a move for a month or two. We could have taken longer term bullish swing trades with greater confidence and we could have stayed with them. We didn’t get that drop so we are stuck in this gradual float higher. We are in hit and run mode where we wait for these dips, we buy them and we exit when the market rallies well above the EMA 8.
Overseas markets were up slightly. China was up nicely and they reported a 20% surge in industrial profits.
If you didn’t take some long positions last week you are caught a bit flat footed. It’s OK, don’t force trades now. We don’t chase gaps up and we will have good entry points this week. There is a lot of news coming out and we should have decent price movement.
Support is at AVWAPQ 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.