Buy This Market Breakout – Don’t Miss This Window – Use Prior Resistance As Your Stop

November 7, 2014
Author: Peter Stolcers, Founder of OneOption

Posted 9:00 AT ET - I hosted a webinar Wednesday night and I used my system to find new trades. CLICK HERE TO WATCH THE WEBINAR Yesterday, the market broke out to a new high and it marched higher into the close. I've been telling you to get long, don't miss this window! You should already have a nice long position. The market liked the jobs number this morning (+214K) and the S&P futures rallied 3 points on the news. Asset Managers don't want to miss a year-end rally and bullish speculators are piling in. This should fuel the breakout. I am not looking for an explosive move higher, just a steady grind. Yesterday, I outlined my strategy. I sold out of the money put credit spreads, I am long in the money calls with a high delta (20% of my max position) and I am day trading the S&P futures from the long side. The put spreads allow me to keep my distance, the calls give me some overnight exposure in case we gap higher and the S&P futures give me the extra boost I need on an intraday basis. My stop is SPY $202. The macro backdrop is very bullish. Check my comments from yesterday and you will see at least eight reasons why we are headed higher. I am not maxing out my long positions because I don't like buying at the all-time high. I have plenty of long exposure and if we continue to make new highs, I will be very happy. I caught the decline and I caught the snapback rally. This been a good year and I'm not going to give my profits back. This is an easy trade. We are breaking out and we will use that prior resistance level as our stop. Add on strength today and build to a position you're comfortable with. I might buy more calls and take my position up to 35% of max if we start grinding. I want to see a strong close. I don't plan on adding after today. . . image

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