In spite of the bad news on retailers, I see many with strong monthly MACD chart divergences: BBBY, which I showed weeks ago in class & also LB, BGFV & many others. How can YOU find these before they begin their strong up moves? By doing exactly as I teach!
So, I'm sure there are many options traders, who are now at home and work, maybe even have a full house of family members. My commitments used to disqualify me from doing intraday options trading, not anymore, now I'm trading on intraday charts looking for MACD divergences and double tops and bottoms like the Options Hunter does.
I'm no Dale Wheatley, I'm still learning and cautious with my trades but I can tell you for a fact that this strategy works for me, it really does. The daily chart of BA had a strong MACD up that really gave the confirmation of the 5-minute divergence Dale looks for.
This is a daily chart with a clearly defined UPSIDE DIVERGENCE on VXX, the Fear Index. The time between the first price bottom to the second one, when the divergence occurred, was approximately one month, from late Jan through late Feb 2020.
That suggested the up move in VXX and down moves in the major markets and component stocks should last approximately 1 month before the MACD begins to stabilize. Around March 18-20, 2020.
The lower time frames on VXX started showing MACD rolling over and some Downside Divergences, the SPY, QQQ, IWM, XLE, SMH, XLF and most major component stocks then began showing UPSIDE divergences
producing huge returns on OTM calls.
Visa close to a doubletop and MACD divergence down on Aug 22, 2019. We watched the price action and picked up some Aug 30 170 puts for 25c, Aug 23 took less than a day to pan out we bailed at 1.11 for over 400% gain. Further OTM options would have yielded even more gains.
Some stocks seem to have a knack for MACD divergences and double tops and bottoms. Boeing is just such a stock. In this video we explore the last 10 months daily price action on Boeing and look at the effectiveness of the Options Hunter strategy.
BP double bottom with upside divergence MACD on June 18th. Watched this one the other day and when prices kept falling even with divergence up in place we put it the watch list. Bought June 21 40.5 calls at .65c for a quick run up only 3 days until expiration.
June 19th up about 15% so far looking to exit if we get over 41.3 or below 40.9 Was out at .80 after commission if you'd stayed in for June 20th mornings move the option hit 1.54 for more than a double.and On expiration day its was at $2.17 more than 300% up.