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Proactive Spreads, September 11th 2017 – GLD, DIS

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After 2 months of reversion, the markets are experiencing a “gap and go” to the upside. If we take the past month’s range as our projected targets, then 255 should be the “upper bounds” for near term action.

Overall market looks very strong, and until evidence to the contrary, most of your trades should be long biased. We’ll be looking for pullbacks in individual names when weakness finally shows up. In the meantime, we’ll look at a pb2bo in GLD and a parabolic long in DIS.

 

Trade #1: GLD

Looking for gold to fade into the pivot level of 125, which will also have the rising 20 day moving average there for support.

Trade Setup

Expected Price: 124.50

Sell to Open GLD Oct 122/119 Put Spread

Tier 1: Enter at 0.45, Exit at 0.10

Tier 2: Enter at 0.60, Exit at 0.45

Tier 3: Enter at 0.75, Exit at 0.60

Trade #2: DIS

DIS had a nasty earnings gap, then more downside on news of a streaming service that has investors spooked. I’m looking for a push to new marginal lows, which will provide a momentum divergence.

Trade Setup

Expected Price: 95.99

Sell to Open DIS Oct 92.50/90 Put Spread

Tier 1: Enter at 0.45, Exit at 0.10

Tier 2: Enter at 0.60, Exit at 0.45

Tier 3: Enter at 0.75, Exit at 0.60

Disclaimer

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN