Alas, we are still in watch mode but there is another familiar ticker to keep an eye on. It was lucrative for us recently but may provide a different payoff. Let’s update on our current pick first.

WMT never did make it to that 107 level to pull the trigger. I think it knew I almost jumped the gun once and is trying to really get me to break the rules. It has a fighting chance to make it today but the longer it takes the more we have to re-evaluate the trade. I’ve put my favorite rule from Keith Harwood below.

But another ticker we cashed in on pretty quickly is getting ready for a familiar move. Take a look at the chart:

We have talked a couple times about how the politicians don’t like oil at $100 a barrel. And we were also able to grab a quick 50% gain on USO just the other day. But you can see on the chart above that the 141-142 price level on USO is a sticking point for this ETF.

Just like the WMT move we are watching, we have a choice here. We can take more risk and grab a put now (The Oct 140 puts are about $7.90) and be ready to get out quick if it turns against us or we can wait for a headline that progress is being made in Iran and see the reversal confirm on the chart.

It all comes back to your risk tolerance and finding the trades that work for you. Just like that WMT trade. Getting in a bit early can sometimes pay off and if your are trading with risk capital you have allocated to shoot for bigger moves that may not work out, then you can grab it.

When I look at the WMT chart I think back to what Keith Harwood has drilled into my head. “Would I take the trade today?” The pattern can put it on your radar and let you watch it for a few days but before you hit that button or if you are in it and trying to decide if you should exit, ask yourself that question. The ability to be as objective as possbile is the key to profitable trading.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily