Option Queen Letter By the Option Royals Jeanette Young, CFP ® , CMT, M.S. and Jordan Young, CMT 4305 Pointe Gate Drive Livingston, New Jersey 07039 www.OptnQueen.com [email protected]December 14, 2015, 2015 The November ‘Jobs Report” goosed the financials creating one of the best rallies we have seen in a very long while. Was it because the “Jobs Report” was just so good or because the data supports an interest rate increase perhaps at the next FOMC meeting? We are not sure which it was but the results were notable. Last week the financial futures rolled to the March expiry and this Friday, the December contract will expire. This activity generally puts some upside pressure on the averages as shorts cover and roll their positions forward. As to Donald Trump, we have been silent on the topic of the GAFE King. Love him or hate him, the man is a marketing genius. We have never seen a candidate with 24/7 press coverage. For months on end Trump has managed to get and keep his name in front of the press on a daily basis. As to what he says; while some is totally outrageous and we do not agree with it, we believe that this country is looking for leadership and he is saying as well as showing that he is indeed a leader. In today’s politically correct matrix in which modern candidates operate Trumps message resonates decisive leadership. What the public fails to realize is that some of the outrageous thing he says he would do would likely never get done after all, this is a democracy and not a dictator ship. To the elected officials in the USA, the American people are sick and tired of PC do nothing behavior. The American people are looking for leaders that are not afraid of taking a stand and really representing the people. What this country does not need, are more do nothing politicians with allegiances to special interest groups. Representatives that vote in pay raises for themselves in the middle of the night and qualify as the most over paid, when considering work done, employees in the world. Talk about do nothing geeze! As to the markets; Rocky Road is a great ice-cream but not great in the market place. The S&P 500 dropped like a stone in the Friday session and teased the 1998.50 support line. The danger here is, that should that neckline of an “M” formation fail, on a closing basis, then the door will be open to 1861. This formation is truly ominous for the market. We warn that a breach of one day will be a tease, but a two-breach is a good signal. In other words, we need to close below the neckline for two days. Generally when you take the one day signal you suffer from a snap-back rally that is why we like to see two-days for confirmation. Both the stochastic
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Option Queen Letter By the Option Royals
Jeanette Young, CFP®, CMT, M.S. and Jordan Young, CMT
4305 Pointe Gate Drive Livingston, New Jersey 07039