Your Trading Task Checklist
The road to becoming a well-rounded broker/trader/educator pressed me to develop a list of tasks that I use faithfully before recommending or entering a trade. Here is my checklist.
Gambling or Trading?
Big industry news: ICE is taking a $2 billion stake in Polymarket — a platform for event-based contracts tied to real-world outcomes like Fed moves or shutdown timelines.
Most Important Right Now
Right now, it’s all about earnings. That’s where traders should keep their focus in the days ahead.
Trading Resistance in PLTR and ITA
The market, as of late, has continued to try to move higher and we’ve seen no significant pullback. As I like to tell traders: Don’t fight the trend. Go with the flow and look for opportunities to put on bullish positions, like a break through a resistance level.
Setting Vol Skew on TOS
The market was flat today, but I want to cover something that can really matter for options traders: how you set up volatility in Thinkorswim.
ETFs or Stocks?
Options on ETFs work the same way as stock options, but volatility is lower because of diversification. That makes them cheaper to trade—but also less risky in terms of short strikes being hit.
Waiting…
The focus today is on Washington. With the government possibly shutting down tomorrow night, markets are in wait-and-see mode.
Prediction: 64%
Prediction markets show a 64% chance of a government shutdown by Oct. 1. If that drags on, it could weigh on stocks and bonds.
How to Use Pivots and Moving Averages
Moving averages are the most popular directional gauges. They are typically the first technical indicator in the novice trader’s toolbox. Many professional traders rely on them as well. Typically, the directional signals come when a short-term MA crosses a longer-term MA.
Retail or Pros?
S&P 500 gave back yesterday’s gains, down about 0.5% as the market battles between buyers and sellers. Retail trading is creating more noise and emotional moves, while professionals may be selling opportunistically.
Telegraphing the Market
We’re off to a strong start this week. Heading into the close, the market’s up about half a percent — but it’s a mixed picture under the surface.
Important: Please Watch!
Nvidia announced a $5B investment in Intel. Not a takeover, just a stake. Why would the leader in chips put money into a competitor?
On My Radar
The market started off hot this morning but fizzled out fast. Here’s what’s on my radar.
This Stock Is an Option
The U.S. is looking to build a strategic uranium reserve and expand nuclear power. That’s good news for uranium miners like Energy Fuels (UUUU) and Cameco (CCJ).
CPI; OPEN, NVDA & ORCL
SPY closed at 657.63 (+0.8%), a new all-time high. But CPI was hotter than expected — not exactly bullish fuel.
Manage Profit and Risk Using Trailing Stops
Stop loss orders are used to set risk. They can also be used to manage profitable trades with an order type known as a “trailing stop.”
AAPL: 3 Signals
The market was a little lackluster today, but Apple stood out — and not just because of price action. I spotted three signals that tell a “past, present and future” story.
What to Watch
Kicked off the week with a pretty quiet Monday — light volume and no big moves.
But it won’t stay quiet for long. We’ve got PPI Wednesday and CPI Thursday, and then the FOMC meeting just nine days away. Odds favor a 25 bp cut, with a few still betting on 50.
4 Definitions of Option Delta
Knowing what option delta is and what it means for your option position is a key component of a profitable trade. Let’s look at the four main definitions of option delta.
NVDA, SMCI & ASTS
Nvidia and SMCI both saw heavy call credit spreads, including 15,000 trades against SMCI. That’s not exactly bullish sentiment for semiconductors.
Double Divergence!?
I spotted a double RSI divergence last week, and sure enough, we got the pullback today. We also broke below the 21-day moving average, though the market bounced back toward it at the close.