Where To Trade Options – How To Trade Options Video 43 part 4

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I’ll keep an eye on my market internals. I’m going to go in right here. Market internals turned green, and if we get a little rally, I could get another $250 profit. We’re up to $360. I got in at $53.40. I’m already up 8 cents. It looks like this could move a little bit higher, here. We’re down to 353, 352, 351.

We’re moving higher. This market could move a little bit higher here, with a counter-trend rally. I would like to see it continue to tick up. It’s at 347. We got on at 40. We’re up 20 cents. We’re up $20, $60. We settled this.

Our internals just turned negative, somehow. We got a little bit of cash in there. We’re up to 322 now, and made a little $75 profit on that. We’re up to 322 for the day.

It’s kind of like playing a game. I like to use the Dow as my chessboard, if you’ll call it that. I like to look at the extremes of these moves. Let’s take a look at the DXD.

What I’m interested, in this point, is in this topping tale here on the DXD. You have a topping tail here, and here. There’s a potential for the market to move somewhat higher. We’re down 349. The market internals have to confirm – and that’s what I’m always looking at. I’m always looking at this making a new low, in the advanced declines. Of course, most stocks are down now.

When you take a look at the number of stocks declining, there are only 10 stocks advancing. How bad is that? Can it go any further lower? Yeah, it could go lower further, but it’s starting to tick up a little bit, here. I may have to go back into this DDM trade.

Let’s see where it goes, first. I’m not going to jump in just yet. Let’s see if it confirms itself, and it can actually go. I’ll keep DDM on my other screen. I’ll keep the DXD up here, which is the ETF I want to buy, if the market continues lower.

It looks like we’re getting a little counter-trend here. The only thing that concerns me is the number of issues that are advancing. Remember, it was at extreme levels. Look at that big up-tick there. Let’s see if there was a big uptick on the volume. If the volume upticks, then we may have the opportunity for a long position, counter-trend rally.

Let’s see what’s happening here. It looks pretty strong. Let’s see if it sticks.

It doesn’t look like it’s going to stick. I’ll go back to my DXD. Market internals have turned to negative again. Let’s see if we can get in here, at an extreme level. We’re down $29.30. This is what I do. I play chess with the market. The market makes a move, and I make my move.

The DXD wants to trade up again. We’ll see. We have 2802 declining issues on the New York Stock Exchange. We only have 11 advancing issues. Things are pretty bad. The ideal situation is to always trade, and take the short side of the market. That is where the momentum is. The momentum is to the downside.

In 30 minutes or so, we’ve made about $200. $200 in 30 minutes is not too bad. Let’s take on this extreme trading and see… It looks like they’re buying up the DXDs, anticipating that the market is going to trade lower again. The market internals look like they will trade lower again, possibly.

I’m not entirely convinced, though. Obviously, the trend is down. You want to stay with the trend. You have this little topping tale. Now, this is a one-minute chart of the advance/decline line, and this is a one-minute chart of the volume.

I am trying to stay on top of this every second. I don’t like these two large bars here. That means that there’s indecision in the market. I may have to stay clear for a few seconds. This is indecision in the market. When these two large bars happen like that, it normally means that the market is not going to do anything, for a while.

Even though we’re not trading options here, and we’re actually trading the stocks

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