The trend is your best friend

[Capital Essence NewsDesk] As we've predicted in the previous Market Outlook:

"Market is due for a big move. Today's trading action suggested that the path with least resistant is still to the upside"

Stocks gapped up nicely Wednesday morning and traded higher into the close with the Dow up as much as +130 points intraday before gave back some of the gains to finish at 13878, up +99 points or +0.72%. Any Dow Diamonds ETF (DIA) call options traded could have earned about 50% intraday.

Editor's Note: below are just some trading ideas flow from our latest Headlines.

"Cubes Speculator Bulletin"

September 25, 2007 @ 10:00 PM

• The "cubes" broke out again this afternoon …the trend is up and we should respect it.
• There are signs of very aggressive speculative actions in the high-beta stocks.
• Why? Fund managers are doing their best to beef up their numbers before the third quarter's curtain closes.
• More likely than not, we should continue to see the same action tomorrow.

You see, QQQQ gapped up nicely this morning and tested the expected $51.50 level. As a matter of fact, the latest call option setup achieved the third target of $51.50 today. The position booked in an incredible gain of +40% in as little as 2 days.

 

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