That was close. On the heels of a nice grab with the USO trade (check it out here) I caught myself getting over confident and about to break the rules. Looking through the charts I didn’t see any great candidates on my first pass. When I started digging deeper, I found one that looked interesting. Usually I will add these to my watch list to keep and eye on, but I found myself trying to manufacture a trade. The options are under $2 and that had me rationalizing that it was worth the risk to get in early.

That is how bad trades start. Let’s see if we can stalk this a little more and let it set up for us.

It definitely looks good, but there is a confirmation we really want to wait for.

Here is the chart and it helps identify the sign we will wait for to pull the trigger.

After a big earning driven drop, Walmart has created a range and has been consolidating in that areal. After a couple up days it looks like it is going to break through and try to get back into its previous range around 110-112. The Oct 110 calls are under $2. They may go up a bit if it does move above they current resistance but they will still be cheap.

We are going to watch it today an can move up to about 107, it will be a sign to take the trade.

Be sure to watch for updates.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily

P.S.–Blane Markham has had some pretty hot picks in his Weekly Profit Opportunity alerts. (here’s the latest) This is a great program that locks in on one trade each week and with this link you can get in for just $1. Definitely worth a try to check it out and see for yourself. Grab it here.