New Trade! Let's Go!
New Trade! Hello Smart Option Sellers! Happy Friday! Before we get to the new trade (which some of you have been wondering when we might see new action), I want to once again emphasize that we need to take into consideration the mood of the overall market. As shown in these charts of the Dow Industrials and the S&P 500 - both are sitting on their 200-day moving averages, which I touched on in the past. The 200-day MA's are the line in the sand and the typically the last line of support when reading charts. If any stock or index breaks through, and has multiple follow-through days below that level, we can be in for rough waters ahead (more selling). But if it bounces convincingly,and has a few days of upside follow-through, then we can feel better about entering new trades. With all the great earnings we've seen so far these past few weeks, I'm hopeful that we can start to see continued upside movement. I'm willing to take a stab on a new trade today because I feel this stock has great potential, because earnings are behind it for the season (released their numbers on May 2nd), and it's in a sector which I think is only going to be increasing in value. Square Inc. (SQ) The "gig economy" is in full force, and a company like SQ is at the forefront. The gig economy is a moniker used to describe all the entrepreneurs and self-employed folks out in the workforce and those who glean multiple streams of income from "gigs" they perform in all types of work. And what do many of these workers use to charge their customers when payment is due? That little white, square-shaped device that plugs into their smartphone or tablet and pumps out a bill and receipt electronically for you to sign with your finger on said smartphone or tablet. Right? We've all done that when buying a product these days. Maybe some of you use it yourselves with your own businesses? Anyway, SQ has been a success from the start and the chart keeps going in the right direction.