{"id":7363,"date":"2017-01-04T08:22:36","date_gmt":"2017-01-04T12:22:36","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=7363"},"modified":"2017-01-13T12:24:12","modified_gmt":"2017-01-13T16:24:12","slug":"proactive-spreads-january-4th-2017","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-january-4th-2017\/","title":{"rendered":"Full Time Profits, January 4th 2017"},"content":{"rendered":"<p><img decoding=\"async\" loading=\"lazy\" width=\"775\" height=\"427\" class=\"size-full wp-image-7365  aligncenter\" src=\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/01\/img_5878fee8f386a.png\" alt=\"\" srcset=\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/01\/img_5878fee8f386a.png 775w, https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/01\/img_5878fee8f386a-300x165.png 300w, https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/01\/img_5878fee8f386a-128x72.png 128w\" sizes=\"(max-width: 775px) 100vw, 775px\" \/><\/p>\n<p>The market just can&#8217;t find any downside followthrough.<\/p>\n<p>In technical analysis, so many people look for patterns that are successful. Yet it&#8217;s just important to understand pattern failure.<\/p>\n<p>So over the past two weeks, the market has been correcting between 2250 and 2275&#8230; a 25 handle range. Not a ton of volatility.<\/p>\n<p>And into the end of the year, the market cleared under that support level, indicating a breakdown of support and potential to the downside.<\/p>\n<p>But on Tuesday, when the markets opened for 2017, we saw a failed breakdown. This tends to be bullish and leads to followthrough towards the upper end of the range.<\/p>\n<p>Core thesis remains the same. It will be a grind, most likely higher, with rotation in and out of different pockets of the market. Our job is to simply identify the best risk\/reward when trending stocks go out of favor in the short term.<\/p>\n<h2 style=\"text-align: center;\">Trade #1: BA<\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" width=\"793\" height=\"346\" class=\"size-full wp-image-7366  aligncenter\" src=\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/01\/img_5878fefe3362e.png\" alt=\"\" srcset=\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/01\/img_5878fefe3362e.png 793w, https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/01\/img_5878fefe3362e-300x131.png 300w\" sizes=\"(max-width: 793px) 100vw, 793px\" \/><\/p>\n<p class=\"bard-text-block style-scope\">Not sure this will be a possible trade unless earnings dissapoints, but there are a handful of key pivot levels from 150 to 145 that haven&#8217;t been tested since the big rally. If we come into those, then I want to sell some put spreads.<\/p>\n<p class=\"bard-text-block style-scope\"><b class=\"bard-text-block style-scope\">Trade Setup<\/b><\/p>\n<p class=\"bard-text-block style-scope\">Expected Stock Price: 150<\/p>\n<p class=\"bard-text-block style-scope\"><b class=\"bard-text-block style-scope\">Sell to open BA Feb 135\/130 Put Spread<\/b><\/p>\n<p class=\"bard-text-block style-scope\">Tier 1: Enter at 0.55, exit at .15<\/p>\n<p class=\"bard-text-block style-scope\">Tier 2: Enter at 0.85, exit at .55<\/p>\n<p class=\"bard-text-block style-scope\">Tier 3: Enter at 1.20, exit at .85<\/p>\n<h2 style=\"text-align: center;\">Trade #2: UNP<\/h2>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/d1yoaun8syyxxt.cloudfront.net\/mr105-1b11e27a-1b12-4526-bec9-83bfa4e19764-v2\" alt=\"image\" \/><\/p>\n<div>\n<p class=\"bard-text-block style-scope\">UNP is showing signs of a breakdown from its most recent range, and didn&#8217;t participate in the afternoon rally with the rest of the market. 100 is a big pivot level, along with the rising 50 day moving average. The low 90&#8217;s should act as a floor on this stock as well.<\/p>\n<p class=\"bard-text-block style-scope\"><b class=\"bard-text-block style-scope\">Trade Setup<\/b><\/p>\n<p class=\"bard-text-block style-scope\">Expected Stock Price: 100<\/p>\n<p class=\"bard-text-block style-scope\"><b class=\"bard-text-block style-scope\">Sell to open UNP 92.5\/90 Put Spread<\/b><\/p>\n<p class=\"bard-text-block style-scope\">Tier 1: Enter at 0.40, exit at .10<\/p>\n<p class=\"bard-text-block style-scope\">Tier 2: Enter at 0.60, exit at .40<\/p>\n<p class=\"bard-text-block style-scope\">Tier 3: Enter at 0.80, exit at .60<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The market just can&#8217;t find any downside followthrough. In technical analysis, so many people look for patterns that are successful. Yet it&#8217;s just important to understand pattern failure. So over the past two weeks, the market has been correcting between 2250 and 2275&#8230; a 25 handle range. Not a ton of volatility. And into the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7363"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=7363"}],"version-history":[{"count":3,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7363\/revisions"}],"predecessor-version":[{"id":7369,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7363\/revisions\/7369"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=7363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=7363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=7363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}