This Market Shape Is More Telling than a “Death Cross”

The major U.S. indices open today right about where they started the month of August.

The Dow has lost -0.85%.

The S&P 500 is down just -0.09%.

The Nasdaq gave back -0.84%.

If you are a straight “buy and hold” equity investor, you probably haven’t made too much money this month. But if you’re an options trader, you could be taking profits all along the way, like we have!

So what’s the rest of the month have in store for us?

If you love technical analysis as much as I do, it probably has not escaped you that the Dow Jones Industrial Average shows what is known as a “death cross.” (Click here for a closer look at that.)

That’s a trading term for when the 50-day Simple Moving Average (SMA) crosses below the 200-day SMA, as it did last week, on August 10.

A death cross gives an indication of some weakness in the average.

However, its meaning isn’t as clear cut as you might think. Will it mean lower prices? Or will it simply be a short-term cross that will rectify itself as prices go higher, eventually bringing the 50-day SMA back above the 200-day SMA? Only time will tell.

I’m looking at this shape instead… Continue reading…

Taking the Express Route to Profit

It’s no secret that I spend most of my time in Florida, as my primary home is located in the Sunshine State.

I get a lot of jabs from my neighbors wanting to know why I “retired” so early, and looking at the average age of my neighbors here on the west coast of Florida, I understand why they ask.

Seriously though, a lot of Baby Boomers are now running smack dab into their retirement.

An aging population coupled with the rising cost of healthcare and prescription drugs is a potent brew for profiting in the healthcare sector.

And it’s no wonder that this company is in the spotlight with long-term analysts… and me.

Let’s find out how to take the “Profit Express” right now… Continue reading…