We went out on a limb back in early April and looked at a put option on PODD, a medical device manufacturer. You can check it out here. It didn’t break immediately forcing us to hold tight and wait for a clear entry. When you see a set up forming and then it stalls, it is easy to think the indicator failed. It is also easy to get distracted with other trades and forget that set up still has a chance. But if you wait, you’ll often find your indicators are solid but it is all about the timing.
PODD took its sweet time but it did exactly what we were expecting. In fact it gave a nice confirmation with a move below the 10 day moving average and then a moved below the 50 the next day. Those are well defined signals that the drop we expected was in play.
The market does what the market wants. It does not abide by anyone’s time line.
Keep learning and trade wisely,
Market Wealth Daily