A descending triangle has a horizontal lower boundary line (called demand line) and a down-sloping upper boundary line (called supply line).

The implication of a descending triangle is generally bearish.  Several ancillary components will either increase or decrease confidence in the reliability of the pattern.

Decreasing volume before the breakout and increasing volume accompanying the breakout increase confidence. Trading volume for silver futures has been on the decline, an indication that the pattern will work out.

However, good reliable breakouts from a descending triangle usually occur at about the same stage of pattern completion as they do in symmetrical triangles. The earlier the breakout the less apt it is to be a false move.

In the case of silver (chart below), prices are squeezing right out to the apex without any breakout yet. This increases the odds of the triangle breakout failure.

What makes silver’s triangle more intriguing is the smaller triangle within the larger triangle. And wait … there is more: If you chart the iShares Silver Trust (SLV) you will note that prices already fell and climbed back above the lower support line.

Supplementing Technicals

I like looking at technicals, but have found that it takes more than a one-dimensional analysis to identify high probability trading opportunities.

The bottom of the chart shows the net short positions of commercial silver futures traders. Commercial traders include silver producers who use futures to sell future production. Because they are active in the business they are considered the “smart money.”

The latest Commitment of Traders (COT) report shows that the smart money is less short now than at previous silver bottoms. From a sentiment point of view, that’s bullish for silver.

Summary

Silver’s performance often sets the tone for U.S. stocks and major indexes like the S&P (SPY), Dow (DJI) and Nasdaq (QQQ), so what silver does here might provide valuable clues for investors of all sorts.

The silver market thinks the lower trend line at 26 is important, otherwise it wouldn’t have touched it several times. If the market thinks so, we should too.

Incidentally, gold prices and the SPDR Gold Shares (GLD) are also sitting atop important support. After an extended period of sideways trading, it seems like we’re getting ready to see some fireworks.

The Profit Radar Report will try to identify how to best take advantage of big moves.

Now, gold and silver are amongst the most heavily traded commodities in the world. Not only that, interest towards precious metals has been growing at an exponential rate. Many investors, institutional and retail…use them as a way to diversify their portfolios. Of course, this is an attempt to reduce their exposure to the equity markets, as well as hedge against the potential fear of inflation.
In fact, many market participants rush to buy precious metals, particularly gold, during sharp retracements in the equity market, as well as, when we’ve had political instability and the threat of war.
It’s no secret that gold and silver are “safe havens”, the financial parachute that investors and traders use during a crash landing.
But are they really safe? Are they still a good investment or just another bubble waiting to pop? You see, rather than blindly accepting what journalists and financial advisors tell us, we’ve decided to investigate these markets further, by using a more scientific approach called quantitative analysis.
The chart below displays the volatility fluctuations in gold futures over the last 2 years (January 2010 to 18th of April 2012). As you can see, there are two volatility estimators: close-to-close and the Yang Zhang estimator (“YZ”). The close-to-close is the volatility obtained by modelling closing prices each day. The Yang Zhang is the volatility extracted using high, low, close and opening prices and then weighted for the overnight risk.

There is significant evidence that the close-to-close volatility (left hand axis) tends to be higher than the YZ volatility (right hand axis). At first glance, we can observe that the average volatility for the market is 18% (for the close-to-close) while it drops to 7.5% (for the YZ volatility). By the way, the VIX averages around the 13%.

So what are these numbers telling us? Can we draw a verdict? Well, the overnight risk is greater than the intra-day one. In other words, gold prices are likely to experience big jumps from one day to another… and then trade within a narrow range during the day (everything else being equal).
And actually, we saw this last summer when we had a big price spike in gold… while the equity markets were getting crushed. And believe it or not, the volatility rose as gold prices were increasing.
Wait…What? But isn’t volatility connected to market crashes? Doesn’t volatility mean only confusion and uncertainty?
The quick answer would be” yes” but the correct one is “it depends”.

Sure, volatility tends to explode during market crashes. And, this type of relationship is called asymmetric effect (or leverage effect), and it’s particularly strong in equity markets.
However, in currencies and commodities the dynamics are a lot more complicated. You see, there is a tendency for volatility to pop as prices go up. Now, at this point, it’s a typical feature, not only in the gold and silver market, but also in the Swiss Franc, Japanese Yen, T-Bonds, German Bunds and other government debt securities…just to name a few.
Here’s something else.
The chart suggests that the volatility in gold futures is mean reverting. Therefore, it will tend to collapse towards its long term average over time. This, of course implies that short volatility strategies can profit… if kept on long enough. On the other hand, long volatility strategies can potentially be profitable if entered when the close-to-close volatility touches the 10% level or when the YZ volatility is trading around the 4% threshold.
It’s important to note here… that volatility is dynamic. What’s worked in the past or is currently working now does not mean that it will continue to work. And as always, past performance is not indicative of future results.

Moving on. What about the Silver?

The chart shows some similarities with gold. For example, we did see an explosion in volatility last summer as silver prices were increasing. Now, if we analyze the difference amongst the close-to-close (left hand axis) and the YZ (right hand axis) volatility, we’ll find a pattern which we saw earlier from the gold market. Once again, the overnight risk is greater than the intra-day moves.

As you may know, the silver market is extremely volatile… a lot more then the gold market. In fact, the average close-to-close volatility is around 40% (left hand axis) while the YZ volatility fluctuates around the 17% level.

And actually, like gold, silver volatility tends to be mean reverting.

Also, last summer, the close-to-close volatility touched 85% …in July 2011 and November 2011 it touched 100%. Of course, long volatility strategies would have been pretty sweet had you put them on before these big moves.

Finally, we’ve looked at both markets individually; it’s time to look at them together.

Closing Thoughts:

1) The silver market is twice as volatile as the gold market.

2) Overnight risk is big, the majority of the large movements occur overnight…not intraday.

3) The volatility is mean reverting in both markets and it follows a symmetric effect (it increases with buying pressure)

4) The volatility in gold is smoother.

Strategy Analysis: For Option Traders

Now, these are not trading recommendations, but a basic guide under the present volatility regime. Remember, volatility is dynamic and past results are not indicative of future results.

1) Long straddles or strangles are favourable when the realized volatility is around 20% for the silver and 10% for gold

2) Iron condors and butterflies positions are favorable when the realized volatility achieves the 35% – 40% for silver and 15% – 20% for gold.

3) Long volatility strategies are favorable when kept for a short period of time.

4) Short volatility strategies may take up to a month and a half to show consistent returns.

5) Call options tend to benefit from a one-two punch. When the futures price rises, implied volatility tends to rise with it.

In this report we tried to provide a quantitative approach to trading gold and silver using realized volatility data. Of course, there are many ways you can trade them and other factors to consider.

Investors can gain exposure to silver in a number of ways. Exchange Traded Funds based on silver prices are one of the most popular ways to gain exposure to silver. Investing in shares of silver mining companies is also another option. Trading in silver futures is another way to play the silver market.

Silver futures are traded on the Comex division of the New York Mercantile Exchange (NYMEX). Comex futures for silver are traded under the ticker symbol SI and in U.S. cents per troy ounce. These futures on the Comex division of NYMEX are delivered every month of the year. The size of a contract on the Comex is 5,000 troy ounces.

At Barchart, traders can view up to date information about these and other futures. Traders can use the Most Active Futures page available on Barchart to get information about futures. The Most Active Futures page includes the list of commodity contracts with the greatest volume for the day. The page is updated with every refresh.

The Most Active Futures Page on Barchart includes three standard views, which include the main view, technical view, and performance view. To get more information about the futures market for silver, traders can also use the Futures Momentum page on Barchart. The Futures Momentum page includes the list of the strongest futures contracts, which are ranked by weighted alpha over the past year.

Traders can also track the performance of silver futures with the help of the Performance Leaders page on Barchart. Barchart’s Performance Leaders page includes commodities contracts with the highest and lowest percent change. The page helps investors determine the commodities with the most price movement from the close of the market the previous day.

There are also other online resources that traders can use to receive dependable and accurate information about silver prices and futures. Bloomberg is a reliable resource online to track futures. Traders can also track futures on the website of the New York Mercantile Exchange.

Sign up today to experience the full benefits of your free membership at http://www.barchart.com.

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GOLD:

  Gold Technical Chart

Gold has been range bound for the last 4 trading sessions between 27700 – 28150 and the technical charts indicate that the range bound movement is likely to continue further too with some more gains to 28400 -28600 levels on the higher side.

On the lower side if the support level of 27700 is broken further weakness to levels of 27000 cannot be ruled out. It would be advisable to short on RALLIES with stoploss of 28650.

SILVER:

 Silver Technical Chart

Silver charts are indicating range bound momentum after the fall last week and the consolidation can give breakout on either side.

Going purely by Technical Indicators, Silver looks to break down in the next few days to Price levels of 55000 if the support price of 57000 is broken and the upmove is likely to face stiff  Resistance at 59500 levels. It would be ideal and advisable to follow the strategy of SELL on RALLIES, with likely STOPLOSS OF AROUND 59800.

(Inputs from Mr. Hemanth .V – Faculty TA, Stock Market Institute)

Cheers!!

Team SMI

http://www.stockmarketinstitute.org

Gold TA Chart

GOLD:

After the rally last week in gold to the first target and resistance level of 28900 it has been consolidating between 28500-28980 range from the last 4-5 sessions. The technical charts indicate formation of Flag pattern the breakout of which would be above 28980 with good volumes.

The breakout of the FLAG pattern would result in the upmove for the next target of 29460 soon.

Silver TA Chart

Silver:

Silver has been in the very narrow range between 58200-58900 from the last 3 sessions after the upmove from 57200 levels. Silver also has been forming a FLAG pattern technical with likely targets of 60000-60800 if there is price breakout above 58960 levels.

On the lower side a break below 58200 has good support around 57200 levels which can be used for momentum trading opportunity.

Cheers!!

Team SMI

http://www.stockmarketinstitute.org

อัพเดทความเคลื่อนไหว Silver Futures แต่ละซีรี่ยส์ ประจำวันที่ 12 มกราคม 2555

อัพเดทความเคลื่อนไหว Gold Futures แต่ละซีรี่ยส์ ประจำวันที่ 12 มกราคม 2555

http://www.hshfutures.com/uploads/hgf_G_20120112.pdf

ที่มา http://www.hshfutures.com

 
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Mon, 9 Jan 2012 7:00 est

Overnight Developments

• Global stocks this morning are mixed with the Euro Stoxx 50 down -0.28% and Mar S&Ps down -0.10 of a point.  Stocks and commodities are mixed while Treasuries are weaker as German Chancellor Merkel and French President Sarkozy meet in Berlin to discuss measures to rescue the euro over the next 3 months.  Treasuries weakened after St. Louis Fed President Bullard said late Saturday that the Fed probably won’t begin a new round of bond purchases (QE 3) following last Friday’s “encouraging” jobs report.  Nov German exports rose +2.5% m/m, stronger than expectations of +0.5%, which lifted the euro off of a 1-1/4 year low against the dollar.  The euro may succumb to additional bouts of short covering after the CFTC late last Friday reported that futures traders increased their net short positions against the euro to a record 138,909 contracts in the week ended Jan 3.  Gains in the euro may be limited however, after the Markit iTraxx SovX Western Europe Index of credit-default swaps that insure European sovereign debt rose to a record 386 bp.  Stock gains may also be limited after Nov German industrial production fell -0.6% m/m and rose +3.6% y/y, weaker than expectations of -0.5% m/m and +3.9% y/y.
• Asian stocks today closed mostly lower with Japan closed for holiday, China up +3.40%, Australia -0.08%, South Korea -1.06%, India -0.22%.  China’s Shanghai Stock Index posted a 2-week high and closed higher on speculation the government is relaxing monetary policies to bolster economic growth.  Dec China new loans increased by 640.5 billion yuan, the highest amount in 8 months and stronger than expectations of 575 billion yuan, while Dec China M2 money supply growth expanded at a +13.6% y/y pace, the fastest pace since July and stronger than expectations of +12.9% y/y.  Comments from Chinese Premier Wen Jiabao also boosted stocks when the Shanghai Securities News reported that he called for measures to boost confidence in the stock market including reforming initial public offerings and improving companies’ dividend payouts.

Overnight U.S. Stock News

• March S&Ps this morning are trading little changed, up +0.10 of a point.  The US stock market last Friday settled mixed as European recession concerns overshadowed stronger-than-expected U.S. employment data and calls by Fed members for additional easing: Dow Jones -0.45%, S&P 500 -0.25%, Nasdaq Composite +0.16%.  The Nasdaq posted a 1-3/4 month high.  Bearish factors included (1) carry-over weakness from a fall in European stocks on concern Europe may be headed for recession after Dec Euro-Zone economic confidence fell to a 2-year low (-0.5 to 93.3), Nov Euro-Zone retail sales weakened more than expected (-0.8% m/m), and Nov German factory orders plunged -4.8% m/m, the most in 2-3/4 years, and (2) weakness in bank stocks after Sanford C. Bernstein and Ticonderoga Securities LLC cut their Q4 bank earnings estimates and said a weak Q4 dimmed prospects for a capital-markets rebound in the first half of this year.
• Bullish factors last Friday included (1) the larger-than-expected increase in Dec non-farm payrolls (+200,000 versus expectations of +150,000), (2) the unexpected decline in the Dec unemployment rate which fell to its lowest level in 2-3/4 years (-0.2 to 8.5% versus expectations of +0.1 to 8.7%), (3) the larger-than-expected increase in Dec manufacturing payrolls (+23,000 versus expectations of +5,000), (4) the unexpected increase in Dec average weekly hours (+0.1 to 34.4 versus expectations of unchanged at 34.3), which may prompt employers to boost hiring as current employees work more hours, and (5) comments from New York Fed President Dudley who said the Fed may consider further monetary easing to improve the economic outlook.

Today’s Market Focus

• March 10-year T-notes this morning are down -2 ticks.  T-note prices last Friday fell to a 1-week low after the stronger-than-expected Dec U.S. non-farm payrolls report but then erased their losses and settled higher on dovish Fed comments along with concern Europe may be headed for recession: TYH2 +8, FVH2 +3.2, EDM2 +5.5.  Bullish factors included (1) comments from New York Fed President Dudley that suggests he favors additional Fed easing when he said “because the outlook for unemployment is unacceptably high relative to our dual mandate and the outlook for inflation is moderate, I believe it is appropriate to continue to evaluate whether we could provide additional accommodation in a manner that produces more benefits than costs,” (2) comments from Boston Fed President Rosengren who said “he expects that inflation is likely to be below 2.0% not only in 2012 but also over the next several years” and that the Fed should “further purchases of mortgage-backed securities to help provide a more rapid recovery in housing,” and (3) recession concerns in Europe after Dec Euro-Zone economic confidence fell to a 2-year low and Nov Euro-Zone retail sales and Nov German factory orders both weakened more than expected.  Bearish factors included (1) the larger-than-expected increase in Dec non-farm payrolls (+200,000 versus expectations of +150,000), (2) the unexpected decline in the Dec unemployment rate which fell to its lowest level in 2-3/4 years (-0.2 to 8.5% versus expectations of +0.1 to 8.7%), and (3) a pickup in inflation expectations after the spread between 2-year T-notes and TIPS, or breakeven rate, widened to 1.682 percentage points, a 5-month high.
• The dollar index this morning is lower with the dollar/yen -0.13 yen and the euro/dollar +0.40 cents.  The dollar index last Friday soared to a 13-month high and finished higher as U.S. economic data points to strength in the U.S. economy while Europe may be headed for recession: Dollar Index +0.318, USDJPY -0.148, EURUSD -0.00726.  Bullish factors included (1) the slump in the euro to a 1-1/4 year low against the dollar on recession concerns after Dec Euro-Zone economic confidence fell to a 2-year low and Nov Euro-Zone retail sales and Nov German factory orders both weakened more than expected, and (2) the stronger-than-expected Dec U.S. non-farm payrolls and the unexpected decline in the Dec U.S. unemployment rate to a 2-3/4 year low, which signals economic strength that is dollar supportive.  Bearish factors included (1) comments from New York Fed President Dudley who said the Fed may consider further monetary easing to improve the economic outlook and (2) dollar negative comments from Boston Fed President Rosengren who said the Fed should “further purchases of mortgage-backed securities to help provide a more rapid recovery in housing.”
• Feb crude oil prices this morning are down -36 cents a barrel and Feb gasoline is -0.19 of a cent per gallon.  Crude oil prices last Friday settled mixed as a stronger dollar and European recession concerns offset strong U.S. payrolls and Iran concerns: CLG12 -$0.25, RBG12 +1.51.  Bearish factors included (1) the rally in the dollar index to a 13-month high, which reduces investment demand for commodities, and (2) signs that the European economy may be headed for recession after the Dec Euro-Zone economic confidence fell to a 2-year low and Nov Euro-Zone retail sales and Nov German factory orders both weakened more than expected.  Bullish factors included (1) the larger-than-expected increase in Dec U.S. non-farm payrolls and the unexpected decline in the Dec U.S. unemployment rate to a 2-3/4 year low, which is positive for economic growth and energy demand and (2) heightened geopolitical concerns after an EU official said European foreign ministers are likely to agree to block Iranian oil imports at a meeting on Jan 30, which may prompt Iran to try to close the Strait of Hormuz where one-sixth of the world’s crude supplies flow through each day.

Today’s U.S. Earnings Reports

Earnings reports (confirmed releases, sorted by mkt cap): AA-Alcoa (BEST earnings consensus -$0.01), AYI-Acuity Brands (0.66), SCHN-Schnitzer Steel (0.23), MG-Mistras Group (0.25), SMSC-Standard Microsystems (0.33).

Global Financial Calendar

31.85 was the level.. China bot .. nom nom nom .

SI 5 min

31.50 found a seller.

5 min

Back to 32 …. up 7% today… you know the drill… outrageous moves are rational in a non-rational market .

5 minute with 1 min inset

The introduction of RMB-denominated gold and silver futures contracts at HKMEX will add a completely new dimension to trading such contracts, in addition to the usual things that they being the precious metal futures. The new contracts can and should be designed such that, together with their USD-denominated counterparts, they will serve as an effective means to trade the USD-RMB currency pair. The HKMEX USD-denominated gold futures – its inaugural contract – was launched 4 months ago in May 2011 and has gained good tractions with several thousand contracts changing hands daily.

Regardless whether the RMB gold and silver futures will be met with the same rousing start, RMB as a settlement and margining currency for exchanges outside of Mainland China is here to stay. Besides the HKMEX’s planned initiatives, the Hong Kong Exchange & Clearing (HKEX) began to accept RMB as margin deposits back in September 2010. Bursa Malaysia followed suit in December 2010.

With China starting a pilot program to prepare the FCMs there to offer foreign futures trading, customer demands for acceptance of RMB as margin deposits will go only one way – skyward.

Potential trades to be looking at in the next few weeks, after the market has exhausted the current move:

Buy Oct silver puts at around 10 cents (strike to be determined).
Buy platinum/short Nymex (50 oz) mini gold at a premium to the gold.

Call us at Slipka Trading to discuss markets or for more info on opening a new account.
800.820.2119

EF

Nothing.

Turns out, there is no such thing as insider trading in futures trading. So, if you work at an oil processing plant in Houston and find out it will be shut down for 10 days, there is nothing stopping you from buying up Gasoline futures ahead of the news coming out. Similarly, if you work at a beef processing plant and are one of the first to know that some of the beef has been found to have mad cow disease – there are no laws against using that information for your own financial gain. Contrast that to the stock world, where it is against the law to trade on material non public information.

Crazy, right? Yes and no. Yes, because people can and will get out in front of non public information to make some money. No, because it is rare for any news big enough to move an entire commodity market to be isolated in a single person or location.  It isn’t the case where only the executives of the Midwest know about a drought in the country’s corn growing region, for example.

The bigger worry for futures markets is market manipulation, such as was recently alleged against two oil traders who allegedly built up inventories in Oklahoma in order to drive up prices (story here).

The basic idea is that, if you buy enough of something to create an artificial shortage, prices will go up, as will the value of whatever you’ve stockpiled, creating even more wealth for you in the end (ignoring the fact that you have to somehow get out of the trade). This is called market manipulation, and that you can go to jail for. Even so, claiming enough of anything to cause such a shortage is difficult (read: expensive) to do. There have certainly been those who have tried over the years, but at the end of the day, their fates serve as cautionary tales for those interested in following in their footsteps.

Gangsta. Can you tell who is who?

• Look at 1869, when Jay Gould and James Fisk tried to corner the gold market, only to create a financial panic that resulted in major Congressional investigations.
• In the 1950′s, two farmers, Sam Seigel and Vincent Kosuga, attempted to corner the market on onions, which ultimately lead to a ban on trading in onion futures- period.
• In the 1970′s and 80′s, the most famous market cornerers of all time – the Hunt brothers –  at one point, held the rights to over half of the world’s deliverable silver, only to be caught in a margin raise that lead to massive losses for them.
• Yasuo Hamanaka attempted to corner the copper market in the 1990′s, but his gamble lost him $2.6 billion and landed him in prison for eight years.
• In 2010, Anthony Ward bought over a billion dollars worth of cocoa, establishing ownership of 7% of the market, ultimately leading to a price surge and industry wide ostracization.

Along these lines – the CFTC just today finalized their rules on market manipulation (CFTC market manipulation rules), making it more broad and encompassing that the old rules, which as can be see above didn’t act as too much of a deterrent.

According to Reuters:  “The rule …outlaw[s] actions that directly or indirectly manipulate or attempt to manipulate the price of a swap, a commodity in interstate commerce or a future.”

Also in the rule, a new bit prohibiting trading on material non-public information that was obtained through fraud or deception, which keeps open the door for all material non-public information gained by means other than those to be traded on. If regulators vigorously pursue violators of these regulations, the next generation of Hunt Brothers may be ditching their Versace duds for bright orange jump suits, or taking a permanent vacation in a nation without extradition agreements. Al Capone did once say, “Capitalism is the legitimate racket of the ruling class.”

DISCLAIMER

Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.

The entries on this blog are intended to further subscribers understanding, education, and – at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex.  Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts.

The mention of asset class performance is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.) , and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices:  such as survivorship and self reporting biases, and instant history.

Managed Futures Disclaimer:

Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.

Copyright © 2011 Attain Capital Management, LLC. All rights reserved.

ATTAIN CAPITAL MANAGEMENT, LLC.

1 E. Wacker Dr., 30th Floor, Chicago, IL 60601

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www.AttainCapital.com

This communication is intended for the sole use of the intended recipient and is for informational purposes only. It is not intended as investment advice, or an offer or solicitation for the purchase or sale of any financial instrument. No market data or other information is warranted by Attain Capital Management as to completeness or accuracy, express or implied, and is subject to change without notice. Any comments or statements made herein do not necessarily reflect those of Attain Capital Management, or their respective subsidiaries, affiliates, officers or employees.

Today’s strong bull market has a couple of things contributing to it; China came out with a strong GDP number which spilled over as a positive overtone to the euro driving the US dollar down as well as Fed Chairman Bernanke delivered his semiannual monetary policy report in which he indicated a possible QE3 program if the US has a need for it. Things to watch over the next couple of weeks which could drive these markets are the resolution or lack of resolution of US Debt ceiling and budget, European debt problems and rising inflation for China and Europe. Contact us at Slipka Trading to discuss our trade strategies for these markets as well as other commodity markets.

"Silver & Gold"

EF

Going into next week we would keep an eye on GLD and SLV. Seems like not many people are talking about Gold and Silver like they were a few months ago and it seems like they are getting ready for another big move. You can see from the charts the last two major signal that fired off on the Daily charts were nice winners.

GLD has yellow bars which means a bigger than normal move is about to occur. SLV has not fired off the long signal yet but it could Monday.

The best way to play these is to buy July/August calls.

The targets listed on the charts are the bigger wave targets so there will be minor waves within the larger waves. We would look to sell the July calls at the first minor wave target and hold the August through the minor waves. The reason we do this is so you are still in half the position with more time.

When stocks like GLD and SLV start to move it is easy to miss the entry so the August calls are meant to be held not to try to trade in and out multiple times. These stock gap so if you are flat into a big gap it is emotionally hard to re-enter the trade.

Happy Trading,

http://www.eMiniSchool.com