Your Connection to Wall Street


Silver Bullet Express (9/27/20)

Greetings to all Subscribers:
Image result for stock charts

Welcome to the September 27, 2020 edition of the Silver Bullet Express. This is a weekly publication and its purpose is to keep you informed on current market conditions as well as our opinion concerning the overall market.

Last week, we continued Phase Three of our weekly training webinar. This phase is focused on advance trading techniques and strategies. During this phase, we will also learn how to apply everything that we have already learned when we trade. At the end of each webinar, we will have a question and answer section. You will also be able to ask questions during the webinar if there is something that needs more clarification during that time. You are encourage to write all of your questions down before each webinar in order to insure that you don't forget to ask them. This week's phase three training webinar will be held on Sunday, September 27, 2020 at 7:00 PM CST. If you have not already registered for phase three, you can do so by "Clicking Here". After registering, you will receive a confirmation email containing information about joining the webinar. PLEASE BE ADVISED THAT ONLY SILVER BULLET SUBSCRIBERS WILL BE ABLE TO ATTEND THIS TRAINING. THEREFORE, IN ORDER TO ATTEND THIS TRAINING, IF YOU HAVE NOT ALREADY DONE SO, YOU NEED TO SUBSCRIBE BY "CLICKING HERE"

 

This Week's Market Recap

Since our last newsletter on September 20, 2020, our Big Boys test indicates, as it was last week, that the smart money is still currently flowing back into all of the main three indices. This week, the Dow Jones added 1,928 net bullish positions, the S&P 500 added 6,550 net bullish positions, and the NASDAQ added 602 net bullish positions. We note that this week the Dow Jones has the greatest flow of the smart money. As such, we will focus on the DIA.

Technically speaking, looking at the DIA's daily, one year chart, the price action shows a bearish trend pattern with lower highs and lower lows. The 4,9,18 EMAs also indicates bearish. The RSI also shows bearish because it is clearly in bearish territory, below its 50 momentum line. Additionally, the MACD has done a bearish cross below its 0 momentum line, which also indicates bearish. On the 20 day 90 minute intraday chart, all three stochastics are in overbought territory which indicates bearish because they show a high probability that the DIA is about to take a dip. The MACD histogram also shows bearish because it is transitioning from blue to red. Therefore, as with the daily chart, the 20 day 90 minute intra day chart also shows bearish. As such, overall, we are bearish even when the Big Boys test indicates that smart money is flowing back into all three of the main indices. This is because, in this market, we recognize the fact that the trend is the only friend that we have, and everything else is designed to take our money.

With the upcoming Presidential debate and election, I expect the market to continue to be chaotic volatile, with wild swings back and forth during the intraday. In this type of market, regardless of the market's direction, big money is still being made during the intraday. As such, we are going to have to put on our day trading hat. That means that we will play the price, volume leaders, entering and exiting those positions within the first 90 minutes. We will also look for positions that have a high probability of gapping up the next day, entering those positions right before the market closes and closing them out within 90 minutes after the market opens the next day.

 

Silver Bullet Open Positions

Last week, we entered and closed out SPY fror a profit. That was the only position that we entered. As such, we do not have any current positions to report.

 

Other Recommended Information

In order to be prepared for our training webinars, for beginners, we recommend the following:

Recommended Books

Wall Street Journal Guide to Understanding Money and Investing - Kenneth M Morris & Virginia B Morris

Wall Street Money Money Machine (Volume 1) - Wade B Cook

(Both of these books can be found on www.amazon.com for under $2.00 each)

Recommended Websites

OIC, Options Industry Council - www.optionseducation.org (Go to the Learning Center)

CBOE -www.cboe.com

Market Activity

Virtual Trading Account

Recommended Charts

Big Charts - www.bigcharts.com

Barchart - www.barchart.com (For Instructions on setting up Bar Chart Click Here)

YCharts - www.ycharts.com

Implied Volatility - IV Chart

Candle Stick Patterns

General Candle Stick Info.

Basic Chart Stick Patterns

Candlestick Reversal Patterns

Recommended Phone Apps

Investing.com

Yahoo Finance

Barchart.com

Glossary

Interactive Brokers Trading Glossary

Stock Fetcher Indicator Glossary

 

Research, Research, Research

Finding Option Positions

Option Trader's Check List

Live Market Activity

Unusual Options Activity

Most Active Options

Highest Implied Volatility

Option Volume Leaders

Change in Options Open Interest

Stocks With Biggest Price Change

Industry Heat Map

Upcoming Earnings

Maximum Pain Theory

Option Prices

 

Five Test to Qualify Option Positions

(1) Big Boys Test

(2) Chart Test

(3) Earnings Test

(4) Opinion Test

(5) Optionable Test (Go to the "Option Chains" in your brokerage account)

 

RSI (Relative Strength Index) Check List

Must have rhythm

Must be above 50 or attacking 50 from the bottom

Must have been increasing for the last 2 days

Must be pivoting at the tip

Must not be choppy

Showing a bullish trend when above the 50 line

Showing a momentum phase when crossing the 50 line from the bottom

 

MACD (Moving Average Convergence Divergence) Check List

Must have strong rhythm

Fast line must be above the slow line

Must be ascending

Must not be diving toward the 0 line

Showing a bullish trend when above the 0 line

Showing a momentum phase when crossing the 0 line from the bottom


In closing... I am looking forward to joining you on our training webinar this Sunday, September 27, 2020, at 7:00 PM CST. Register for the webinar by "Clicking Here" . After registering, you will receive a confirmation email containing information about joining the webinar. With that said, may all your dreams come true, and I will see you at the top. PLEASE BE ADVISED THAT ONLY SILVER BULLET SUBSCRIBERS WILL BE ABLE TO ATTEND THIS TRAINING. THEREFORE, IN ORDER TO ATTEND THIS TRAINING, IF YOU HAVE NOT ALREADY DONE SO, YOU NEED TO SUBSCRIBE BY "CLICKING HERE".


Training Team
SBX Newsletter Service, Inc.

Disclaimer

'The SBX Straight Options Strategy' (The Strategy) is a proprietary product. It's business category is- 'The Leasing of Intellectual Property. SBX is not a financial advisor or intermediary and is not regulated by any regulatory authority in the USA, Canada, UK, EU or the Rest of the World. SBX does not give any recommendation regarding the buying or selling of securities. You should always consult with a financial advisor before doing so. The material provided in this newsletter is for educational and informational purposes only. Using it is entirely at your own risk. Past performance is not a guarantee of future performance. SBX reserves the right to change or amend its Strategies, information, opinions and new subscription fees at anytime without prior notice. SBX makes no commitments, assurances or guarantees to make a minimum # of trading Calls in any given time-frame.

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