Elliott Wave Signals - Closed ARW for 31% Profit

Arrowhead Electronics (ARW) did not have the greatest setup in my view, but was still good enough to take a shot at it at half position. The stock dropped to 38% Fibonacci retracement and bounced a little at a 31% profit and I'm happy with that so I took my profits Nd am walking away. Here was the trade:

Closed ARW put vertical $3.09 for a 31% profit (see original post with trade setup here)

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave S&P Futures

Just a quick note on the S&P's.  You can see that my last forecast of price movement has played out well, at least so far.  The market has not been able to get off the ground and so the bulls seemed to throw in the at the end of the trading day to account for the selloff.  The overnight Globex session saw markets tumble from the Bank of Japan surprise decision and the US market cash session appeared immune to it as it rallied the futures off the lows and into positive territory most of the day.  But by the end of the day, the bears roared back and pushed the market lower through last night's lows.

Price hit the lower channel line support I labeled and has bounce so far.  That channel support should hold if the bulls want to retain control.  My proprietary indicators are still firing off a lopsided amount of short signals to bullish signals at 140 bearish and only 7 bullish. So the market is overbought and ripe for a pullback.  I'm patiently waiting for a signal to get short.

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Elliott Wave Options Signals - Short MMM

3M Company (MMM) is in a Minor wave 4 correction that should have it's ((c)) wave unfold lower towards the 23% Fibonacci retracement level in the upcoming days.  I got short the stock through a put vertical earlier this week but forgot to post the trade here.  The stock has not done much since my trade anyway as my position is actually down just a little from when I entered:

Bought MMM put vertical June 3rd  157.5/170 for $4.02

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Elliott Wave Options Signals - Short DVY

The iShares Dividend ETF (DVY) confirmed a short signal last week and rallied to some resistance along with a wave count that shows a terminal ending diagonal for Minor wave 5.  Although I'm reluctant to trade this types of ETFs regularly and aggressively, the setup is quite appealing right now.  So I'm going into half a position to play it safe:

Bought DVY put vertical June 17th  79/83 for $1.15 

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Elliott Wave Option Signals - Short ITW

Illinois Tool Works (ITW) has been firing off short signals (red paint bars derived from proprietary indicators) for several weeks as this stock as chopped higher.  You can see that price action appears to be starting to roll over.  Today's closed triggered the short confirmation signal on my proprietary indicators (not shown) which caused me to look further into this stock.  The other thing that got my attention is that implied volatility has steadily exceeded historical volatility since back in February, and well into today when my indicators confirmed a short signal.  This indicates that options traders are predicting a large move in this stock, and my indicators suggest it will be a bearish one.

Now, let's look at the Elliott Wave structure.  Here too I can see a Minor wave 3 finishing and a wave 4 down getting underway.  Although I'm not sure wave 3 is completely done yet as wave ((a)) and ((b)) seem a bit tight and close together relative to where wave ((c)) should end up.  Either way, the evidence lines up for this stock to be getting a nice bearish move underway soon so I made the following trade right before the close:

Bought ITW put vertical June 14  97.5/105 for $1.91

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Options Signals - Closed PLCE at 40% Profit

Children's Place whipsawed up an down today which made me a little nervous because it came real close to hitting my target, which was below wave A, and rallied sharply as well.  I did not want to get caught missing the move I wanted and see this stock shoot the moon against me so I was happy putting in a limit order this morning for a 40% profit it hit.  As the stock market sold off this afternoon, it took PLCE with it and my limit order was hit shortly before the close.  Here is the result:

Closed PLCE put vertical (half position) at 72.5/82.5 for $4.65 for a 40% profit.  

SEE ORIGINAL POST WITH TRADE SETUP HERE

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Options Signals - Closed DPZ for 136% Profit

Domino's Pizza tanked after I got a short signal on my proprietary indicators and shed 9% after missing 1Q earnings. It quickly hit 50% Fibonacci retracement before bouncing and I'm happy with that move in my favor to close my put spread for a nice 136% profit on half a position:

Closed DPZ put vertical at 125/140 for $12.25 for 136% profit

See original post with trade setup here.

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliot Wave Options Signals - ARW, DPZ, PLCE and MSI

It was a very busy day today as I close most of my options today at nice profits and moved into new positions.  Here is a summary of options trades closed this week:

HMY  +17%
BKH   +40%
EXC   +42%
EIX    +30%
T        +25%
SYY   +39%

I already detailed the trade setups and closures of the closed trades, so I'm going to briefly show my charts and trades for my new positions today:

Arrow Electronics (ARW) fired off a bearish signal several days ago but didn't confirm it until today's decline which tells me wave ((c)) of 4 is getting underway.  If so, I want in on it.  Now, earnings are next week which could bode well for my trade, but I am unsure how it will play out so I want to be cautious here.  I'm going in only at half a position and am moving out the options to June.  This way if the earnings response results in a sharp rally, I can add another half position short and be able to wait it out until June:

Bought HALF position ARW put vertical at 57.5/65 for $2.35

Domino's Pizza (DPZ) fired off a short signal over a week ago but it was not confirmed until today as a mature wave 5 of (5) appears to have completed.  This is in a similar position as ARW in that earnings is going to be announced in 7 days so I want to allow for an earnings spike higher and be able to add to the position and have enough time.  So I'm only going in half a position on the June options:

Bought HALF position DPZ put vertical at 125/140 for $5.20

I've been watching Children's Place Inc. (PLCE) for several weeks and there have been sporadic bearish signals the past two weeks but no confirmations.  My patience paid off as you can see that the past couple weeks this stock as rallied sharply in wave B.  But I think this might be a good opportunity to start getting short this stock as price close right on the bearish signal confirmation line, wave A looks like like a 5 wave impulsive move so it is unlikely to be in a "Flat Correction" which would take wave B above $84.91 (in Flat Corrections, wave A is three waves).  Also, earnings are out in 3 weeks and I want to start getting short cautiously.  So I'm doing half a position in June options:

Bought HALF position PLCE put vertical at 72.5/82.5 for $3.32 

Motorola Inc. (MSI) fired off a bearish signal the end of March, it was not confirmed, and then continued to rally.  The past week there have been consecutive bearish signals in place that has finally led to a confirmation at today's close.  The wave count suggests a sharp wave 2 down may be getting underway now.  Earnings are in 2 weeks but the price action, signal and wave count line up well here to get fully short:

Bought MSI put vertical at 67.5/75 for $2.24

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Option Signals - Closed SYY at 39% Profit

Sysco (SYY) spiked down today and had some more follow-through into the close so I set a limit order off the current mid price at $1.25 to see if it would fill and it did so just a few minutes before the market closed.  It is close enough to my target and a confluence of indicators to take profits, so I did.  Notice how price is approaching both channel support, and the 38% Fibonacci retracement at $44.65.  Plus, wave 4 is getting very close to the price territory of wave 1, which cannot have any overlap.  So the decline here may be limited.  Here is the trade summary:

Bought SYY put vertical May 20 44/47 at $0.90 sold at $1.25 for 39% profit.

See post with original trade setup: click here

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Options Signals - Closed T (AT&T) at 25% Profit

AT&T (T) has had a nice sharp decline close ti my target price so I closed the position at a respectable 24% profit.  It will likely continue lower to the 38% Fibonacci retracement level at $37.31 over the next few days but I will take my profits and run on a sharp decline like I got over the past three days.  Here is the trade summary:

Bought T put vertical May 20 27/39 at $0.72 and sold at $0.90 for 25% profit.

See original post with trade setup: click here

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Option Signals - Closed EIX at 30% Profit

Edison Intl. (EIX) declined rather quickly after I placed the trade in an ABC zig-zag fashion.  I don't see this move complete yet as it appears that it will at least decline to the 38% Fibonacci retracement level at $66.72 to complete wave (c).  But price has already hit my target so I am out of the trade at a nice profit.  Here is the trade summary:

Bought EIX put spread May 20 65/72 for $2.74 and sold it for $3.55 for a 30% profit.

HERE IS THE ORIGINAL TRADE SETUP:

Edison International (EIX) is showing signs of a weak wave ((v)) of 5 of (3) and is now undergoing a pullback to the $66.72-$68.89 area.  This is the 23% and 38% Fibonacci retracement levels and is also the area of the previous fourth wave, wave ((iv)), so it's a good area to look to exit this short trade.  Here is my trade:

Buy to Open EIX May 20  65/72 Put Vertical @$2.74

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Options Signals - Closed EXC at 42% Profit

One of the few trades I've had lately that unfolded in a nice clean ABC correction.  Price has currently stopped in the middle of two Fibonacci retracement levels and is in 3 waves which tells me this wave (c) may extend lower to perhaps the 61% Fibonacci retracement at $32.26.  But it will do so without me as my target level was hit.  Here is the trade summary:

Bought EXC put spread May 20 32/35 for $1.08 and sold for $1.53 for a 42% profit.

HERE IS THE ORIGINAL TRADE SETUP:

Exelon Corp. shows a very weak pattern for wave (v) of ((i)) which is similar to an ending diagonal.  This type of pattern shows a tiring of the current trend and often results in a sharp reversal.  We see the start of that strong reversal with a clean five wave decline in wave (a), and it is now in a wave (b) rally phase before a sharp impulsive move lower gets underway for wave (c) of ((iii)).  Here was my trade from two days ago:

Buy to Open EXC May 20  32/35 Put Vertical @ $1.08.

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Option Signals - Closed BKH at 40% Profit

Black Hills (BKH) finally made its way to my target area and is finding nice support at the 62% Fibonacci retracement level.  The decline took its sweet time unfolding in a WXY combination correction for wave (ii).  But since I had a spread, I didn't mind.  The sharp decline here is indicative of a C impulsive wave which I have as wave ((C)), but it can certainly continue lower.  However, it will do so without me as I got my pound of flesh from the market.  Here is the trade result:

Bought BKY put vertical May 55/60 $1.84 and sold for $2.57 for a 40% profit.

HERE IS THE ORIGINAL TRADE SETUP:

Black Hills Corp. is in a wave (ii) within a larger bullish move.  More importantly, it is in wave c of wave (ii), which is an impulsive affair, and therefore should be quite sharp.  Using wave analysis comparing wave A to wave C, and Fibonacci retracements of wave (i), I see a confluence of support between $56 - $57, so my target will lie somewhere in that area.  I placed a put option vertical spread:

Buy to open May 20  55/60 Put

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Options Signals - Closed HMY Put at Modest 17% Profit

I closed my Harmony Gold Minding put right at the close.  It dropped over 9% and put me in the profit column on this one finally so I took the profits and ran.  Since there was not viable put spread on this stock, I could only buy a put and so every day I experience time erosion and so a 9% drop in a day is something I'll seize on.  Although I do feel this stock can easily continue lower towards the $3.00 area.

Wave X was much higher and longer than I anticipated and so it caused a delay and erosion of profits as a result, but a profit nonetheless.  Here is the final tally:

Bout HMY Put for $0.64 and sold it for $0.75 for an 17% profit.

HERE IS THE ORIGINAL TRADE SETUP:

Harmony Gold Mining (HMY) has reached buying capitulation as you can see from the sharp volume spike at the wave (1) high.  This thing has been on fire but as stalled significantly the past few weeks and triggered a bearish signal on my proprietary indicators.  The wave (2) correction is unfolding as a W-X-Y combination correction so I expect a move lower toward my target area of $2.80 - $3.00 quite over the next couple weeks.  Here is the trade I put on yesterday....it is trading at a better price now with a big gap up this morning but I expect that gap to be filled with a move downward quite soon.  I don't like any of the put spread options so I'm going with a small position on a straight put only:

Buy to Opoen HMY May 20  4 Put @ $0.64.

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Elliott Wave Options Signals - Shorting Sysco (SYY)

Sysco (SYY) has some weak price actions since launching on this wave 3 rally on big volume.  It has been chopping higher and rolling over for weeks and has now confirmed a sell signal on my proprietary indicators.  The wave count is also complete and we should see price decline to the lower channel and 38% Fibonacci retracement around $35.  Here is the trade:

Buy to open SYY May 20. 44/47 Put Vertical @ $0.90

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Option Signals - Closed TSN Short at 34% Profit

Tyson (TSN) dropped heavy yesterday and followed through with more this morning.  It has reached my initial target area so I closed the position at a 34% profit:

Bought at $3.75 and sold at $5.03 = +$1.28, or +34%

Here is the original post with the trade set up:

Tyson Foods (TSN) has a really nice setup here for a large gain.  You can see the labored action in wave 5, similar to an ending diagonal, which means a sharp shot downward could be coming soon.  This would also be a second wave in wave (2) which also lends itself to a sharp move lower.  I'm targeting the $62.50 area which would bring about a an 85% gain if I wait until expiration, which I probably won't.  Regardless, if price hits there sooner I wills till be looking at a 35%-60% profit sometime in April.  Here's the exact trade:

Buy to Open TSN May 20  60/70 Put

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Options Signals - CTL CenturyLink

CenturyLink (CTL) confirmed a bearish signal on my proprietary indicator with it's close today.  This fits well with a sharp move lower with the rest of the stock market.  With CTL, I am projecting a Minor wave C drop to at least the 23% Fibonacci retracement at $29.78 in what is an ABC Flat Correction since wave B exceeded the start of wave A.  Typically, in Flat Corrections, wave C will break just a little below wave A before completing.  This is why I don't think the correction will go much deeper than the 23% Fibo retracement.  Here is my trade:

Buy to opn CTL May 20  29/33 Put Vertical at $1.38.


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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Options Signals - Closing KORS Put Spread at 31% Profit

Michael Kors (KORS) had a sharp reversal after wave B completed and is now in a Minor wave C of (2).  Overall the trend in this stock is bullish so I don't want to get greedy here.  With over 4% down today, and reacing 50% Fibonacci retracement of wave (1), I'm more than happy to take a 31% profit and walk away.  Here was the trade:

Entered Put Spread at $1.65 and just closed it at $2.16.

HERE IS THE ORIGINAL TRADE SETUP:

KORS has formed a short term too that should see the retailer drop to at least the $51.50 - $51.75 area before resuming its uptrend.  I placed a put spread in for this trade and here are the details:

Sell May 50 Put
Buy May 55.5 Put
Limit price of $1.65 per contract

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

Elliott Wave Option Signals - Edison Intl. (EIX) Put Spread

Edison International (EIX) is showing signs of a weak wave ((v)) of 5 of (3) and is now undergoing a pullback to the $66.72-$68.89 area.  This is the 23% and 38% Fibonacci retracement levels and is also the area of the previous fourth wave, wave ((iv)), so it's a good area to look to exit this short trade.  Here is my trade:

Buy to Open EIX May 20  65/72 Put Vertical @$2.74

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Elliott Wave Options Signals - Exelon Corp. (EXC) Put Spread

Exelon Corp. shows a very weak pattern for wave (v) of ((i)) which is similar to an ending diagonal.  This type of pattern shows a tiring of the current trend and often results in a sharp reversal.  We see the start of that strong reversal with a clean five wave decline in wave (a), and it is now in a wave (b) rally phase before a sharp impulsive move lower gets underway for wave (c) of ((iii)).  Here was my trade from two days ago:

Buy to Open EXC May 20  32/35 Put Vertical @ $1.08.

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.