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]November 29, 2015 It is official, Christmas will arrive on December 25 so, gear up for the shopping bonanza. This year Christmas is a Friday giving the retailers a few extra days for returns and additional shopping. The recent violence in the world has scared many visitors and shoppers away from crowded areas. We were in NYC yesterday and could not believe how light the traffic was and how uncrowded the shops were. Sadly, although the windows and decorations will be spectacular, many individuals will opt for shopping online where the crowds are non-existent, the pressure is absent, shipping is generally free and comps can be run instantaneously. We believe that the season will yield its anticipated sales whether in stores or in cyber-space. High end retailers like Tiffany, Bergdorf, Nordstrom’s, Saks etc. should do fine this season while Wal-Mart might still have a problem. The non-supervisory employee’s continue to struggle with their debt burdens and costs of just plane living while the higher paid end of the spectrum has been doing just fine. There are five weeks left in the year for investors to take losses for the tax year 2015. Most of these losses have already been taken but there are always a few stragglers along the way. Most of the losses were taken earlier this quarter when the market was retreating. That said, we should see a nice bounce in these issues as they are returned to the portfolios once the 30-day wash sale time has passed. The S&P 500 seems to be losing steam. The candlestick seen in the shortened Friday session show a failure to push the market down as well as a failure for the market to push higher. This is seen by the long tailed candlesticks from the session with a close near where the session began. All the indicators that we follow herein continue to look positive although the stochastic indicator has begun to curl over. Bothe the RSI and our own indicator are pointing higher with plenty of room to the upside. One cautionary note is that if this market cannot take out the high seen on November 4 of 2110.25, it will be negative for this market and would open the door to 1998.50. Don’t forget, that this index will roll in about two weeks to the March expiry. There is always a certain amount of jogging and adjusting as we approach the roll. The Market Profile chart shows us how flat the trading in this index has been especially when you look at the daily and the weekly charts. The daily 1% by 3-box point and figure chart has an upside target of 2542.39. The 60 minute 0.2% by 3-box point and figure chart has an upside target of 2169.65. We believe that this market isn’t going to go anywhere in the last weeks of the year. Santa
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Transcript
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