FANG Goes Bang and Boom

• President Trump news from NATO paying more to defense reduced trade issues and drove everything up. Amazon opened above it's all time high and ran further along with other FANG except Netflix which got a downgrade. Credit card companies ran along with defense stocks. Retail stocks were down for the most part.
• Facebook and Microsoft moved to new highs, but if you follow me you know I enjoy trading options on Alphabet (GOOGL) and it ran and ran today. The one minute chart indicated that it was going higher, but everything else indicated that FANG was over bought. I waited for a turn down and never got it  but I did take advantage of what upside was left since I got in so late. I was very leery and took profits and as soon as I saw it was going higher I bought back in. 
  
• I am expecting more upside on Friday  but will be ready to sell to take profit as soon as I see it turn down. When you have lost money waiting on it to continue in your direction you will take profits and buy back in. Don't fall in love with this style as this happens about once every other week. You just want to make sure you are on the right side. 

How to Turn a Down Day Positive

• With President Trump's tariff announcement yesterday afternoon sending most everything down today presented huge buying opportunities if you were ready to move at market open today. 
• Boeing had a huge day yesterday and gets affected big by tariff talk. Today it opened down $6 and shot up immediately to be short lived by 9:40am where it started its turn down. Ten minutes to make a profit is good, but turns ugly if you keep holding expecting it to come back up. Unfortunately I experienced the ugly going from a profit of $450 to a loss of $550 today.
  
• Alphabet (GOOGL) on the other hand gets sold off on trade news even though it doesn't have any direct business that would be affected. It was down from open and took off from there. I bought Calls when I saw it was going up and sold where I thought it peaked on the first 2 peak. I was not in on the 3rd peak that occurred at 10:30am, but did take advantage in the afternoon pop for a small gain over $100.
  
  
  
  
• LEARNING LESSON: When the Option you bought went up big came back to where you bought it, sell it ASAP before it goes down further  

Market Excitement on Tuesday

• The market was up some led by Boeing. Technology stocks were flat most of the day including FANG. Tariff talk sped up in the afternoon into the close. There is always money to be made whether the market goes up or down.
• Alphabet opened up a little but the stochastic lines indicated that it was going up more than what it did. I bought my first set of Call Options when it came back to the open price within the first 5 minutes of market open. I missed my sell mark by $50 a contract as I bought them for 7.10 and sold for 8.18 on 1175 strike option.
  
  
  
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• I bought one more call option with the same strike price for 6.80 when Alphabet went down to 1169 as shown in the illustration and sold with a limit order of 8.50. I stopped looking at Alphabet for the rest of the afternoon.
  
  
• I moved to trading Boeing options because it had a large run up and came back closer to market open with signals pointed that it was going back up. I bought 347.50 strike price Call Options for 2.24 and wanted to sell for 3,but took the first peak at 2.81. I could have gotten 3 if I held but I didn't want the disappointment of not taking a profit when I could. 
  

Monday Market Crazy

• The Market opened higher today,came back a little before heading higher. The banks are the first to report quarterly earnings for the second quarter on Friday so this movement is due to the strong labor numbers from last Friday. I would expect to see the Nasdaq hit a new high this week before the market pull back on Friday. 
• FANG lead by Amazon, Netflix and Alphabet opened higher, had a minor pull back before pushing past the morning highs near the end of the day. If you didn't sell your calls in the morning around 9:50am, you would have had to wait until 3:55pm to sell positive which was still 2 less than this morning. This morning was difficult to find the peak because so many different stocks gave different indications even within FANG.
• TRADE: If you were following Alphabet (GOOGL) you would have seen it open higher than Friday's close and come down a couple of points. There was the first buying opportunity for Call Options. It shot up to 1162 before coming back within a point of it's open by 9:40am which gave the 2nd opportunity to buy Call Options. It shot up to 1166 by 9:55am which presented the best selling point this morning to get out because it retraced back to where it started, but never went negative for the day. I prefer making money quick and wait for another opportunity so here is the way to play it without worrying about the afternoon. 
  
  
  
  
• LEARNING LESSON: When exiting one position that is cutting a loss, don't jump in to the opposite direction trade too quickly because it might not continue in that direction or might have run out of steam and might not move further. You are better to wait for another day or when the trading signals point to making a change. 
• ADVICE: Don't enter a new trade before 11am as you will almost always have another chance later. 

Strong US Economy Outweighs Tariffs

• Tariffs on China went into effect at midnight and things were looking down at open until a great labor report came out at 8:30am. The timing of the labor report was so perfect to offset the tariff news that the market went higher. China placed tariffs on US imports to offset the US tariffs and some industries like soy beans and lobster are crying. Germany wants to eliminate tariffs which is a positive sign for auto makers, but I don't believe it is positive enough when the largest populated country in the world is going to target our vehicles. 

•  Trading Alphabet looks very similar to last Friday. It opened down and that is where I bought 5 Call Options like last Friday. It felt some resistance around 9:55am before pushing higher where it stayed for the rest of the day. If you didn't make it by 1pm, you were not today as it did little for the rest of the day. I did look at Amazon and Netflix charts to justify the movement of GOOGL.
  
  
  
  

•  There was a small moment of gain that was possible when GOOGL fell below 1153 with less than an hour to go. If you could have bought a Call Option with a strike price of 1152.50 for a dollar,, you could have placed a sell order with a limit of 2 and doubled your money.

Thursday Market Went Up

• The stock market opened higher, came back some and continued higher in the afternoon. The market was lead by technology and banking stocks. Alphabet (GOOGL) was the bigger winner as it followed with the other FANG stocks, but never went negative like Amazon and Netflix.
• Alphabet opened up approximately 8 points and all of the FANG stocks were near the top on their stochastic indicators. Once again you could have bought Call options in the first few minutes on the pull back near where it opened, then sold when it peaked around 10am.
• The bigger buy was when it came back near where it opened around 10:40am and the indicators including Amazon and Netflix where down indicated they were going up. I made good money using this strategy buying Call Options on GOOGL with a strike price of 1130 and selling near the top from 6.55 and out at 13.19. I should have put my limit order for 14, but wanted to make sure I kept my profit.
  
  
  
  
  
  
  
  
  
  

Tale of Two Days before the 4th of July, and Tesla Pain

• Monday, everything opened lower than Friday's close. The Stochastic indicators were at the bottom showing an over sold condition for FANG stocks. Alphabet (GOOGL) opened down 14 and dropped another 6 within the first minute of open. It took off to the upside from there. This was different from a couple of weeks ago when on a Monday it was looking over sold and just went lower. I have found that on Momentum Monday's with Google, take the direction that it wants to go 10 minutes in despite where it is. Google closed above 1142 for the day.
  
  
  
• Tesla on the other hand opened up 14 due to the accomplishment of the production levels of the Model 3. Along with other analyst, I find this production level may not be sustained due to the extra hours and make shift tent assembly line. It went up after open and fell on its face throughout the day. Later it was learned that one of the chief engineers has resigned after working with Tesla for 5 years. Tesla continued lower on Tuesday. Tesla is a funny stock and tends to go on runs. The Stochastic indicators were at the top indicating it was over bought and should come down.
  
  
  
  
• On Tuesday, Alphabet and the FANG stocks opened higher and went down from there. Put option were what you should have bought and held on until you could not anymore. Alphabet shot up to 1150 before coming down quickly, came back to where it opened at 1147 and fell all the way to 1122 where it came back to in the last 15 minutes of trading. The market ended at 1pm on Tuesday.