What is the January Effect?
simple answer http://en.wikipedia.org/wiki/January_effect
I stated weeks ago, that we could have a nice Santa rally followed by the January Effect…….. Guessing how high we go is not my game, but riding the wave until we get there, IS.
Do you play earnings?
simple answer:NO
If you are an investor, you are not “playing” earnings, you are investing through them for many years. If you are a trader(day or swing), YOU DON”T PLAY EARNINGS!!!!!! If you are a gambler(cuz that is EXACTLY what it is) feel free to roll the dice.
The only success you will have “playing”/gambling on earnings, is when the BIG MONEY(institutional) is front running the action with options. And YES, they do know something, most of the time.
What the heck is OPEX?
simple answer: http://en.wikipedia.org/wiki/Expiration_%28options%29
The 3rd Friday of every month options expire(obviously we have weekly options too). This action usually creates volatility, and often you will see a low print in the market Thursday/Friday, the week before expiration.
I still feel the financials($FAS, $C, $GS, $JPM, $BAC) will lead this market higher into Jan Opex. Buy the dips and use stops.
Good Luck to all
If playing earnings mean picking a directional bet, I agree with your statements. If it’s playing the volatility skew that is present, then completely disagree that playing earnings =gambling.
Steve,
i am a directional day trader.
so, in my world, YOU DONT PLAY EARNINGS.
good luck buddy,
David
Fitz,
Do you have an e-mail address? I have a few ideas about your web site I’d like to see but would rather not flood your Twitter account since you get so much action there anyway.
Dean
AKA: jetsticks
Dean,
i am working on the website , and will have a “contact” page up top, with my email assigned for just this site.
thnx,
David
Great post keep up with the great work that you r doing.
thnx Henry,
see ya soon
Thanks Fitz for keeping it real. Your one of the best
Richard,
thnx for the comment.
will be working on the site , the next few weeks,……see ya soon
David
Great work as always very educational. You are absolutely one of the very best out there!!
thank you…..see you soon when Fitzstock Charts premium subscription service is finished(hopefully next month)
Great Post! Keep sharing the wisdom.
thank you.
see you soon(hopefully next month, when premium site is up)
David
Thanks Fitz for the time and effort you put into your posts. After losing a lot in the recent AAPL sell off, I’ve been sitting on the sidelines trying to overcome a lack of confidence. But I’ve been watching and learning from you. Your charts have been spot on and your methods are teaching me a smarter way to trade. I finally stuck my toe in and began trading again last week using your method on some small trades and even a small Yahtzee feels great. Thanks so much for teaching me to trade price! I look forward to learning more on your site.
Casi
Been following you for a couple of weeks on twitter. Thanks for the charts and trade ideas. Looking forward to your new website.
Bill