Investors Observer Workshop. Wednesday, November 29, 4 pm ET

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1 Investors Observer Workshop Wednesday, November 29, 4 pm ET

2 Debby Clowney MBA, Chicago Booth BA, U. of Pennsylvania 20+ years options experience Worked on Wall Street Consultant for KPMG Workshop Coach: Debby Clowney Our goal today is to provide a workshop where we discuss how to translate the Trade Idea Generator s ideas into profitable trades. We will talk both concepts and practical tips to make and manage the trades. We encourage you to ask questions throughout the workshop. If you have a question, likely others have the same question. My colleague, Bobby Raines, will be joining us and fielding questions or bringing them to my attention as we go along. To get the most out of today s workshop, I will ask that you have your Trade Idea Generator launched and during the case studies that you follow along with me. Jot down names of stocks you would like me to review in the Firing Line portion of our workshop.

3 Disclaimer Today s webinar is for educational purposes only. Nothing in today s presentation should be considered a recommendation to buy or sell any security. All stocks and options shown are examples only. Any pricing or potential profitability shown does not take into account your trade size, brokerage commissions or taxes which will affect actual investment returns. Stocks and options involve risk and are not suitable for all investors and investing in options carries substantial risk. Past stock or option performance is no guarantee of future price appreciation or depreciation. Prior to buying or selling options, a person must receive a copy of Characteristics and Risks of Standardized Options available at:

5 What we will do in our STATE OF THE MARKETS What will drive the markets from here? What is the S&P weekly chart telling us about overall trends? Zeroing in on the S&P daily chart How is the Nasdaq doing compared to the S&P? How are small caps (the Russell) doing compared to the S&P? What is the volatility index telling us? How should market conditions guide our trades?

6 NASDAQ experiencing its largest one day loss in months on 4x usual volume The NASDAQ gave up more than 2% today from its highs to its lows. A number of individual names had a correction (10 percent loss) in a single da. The fall in the NASDAQ on profit taking is an indication of SECTOR ROTATION since the Dow and S and P are not having this sort of sell off. Some sectors like retail are showing marked strength today.

7 A look at sector rotation from the past: Technology strong, then weak; banks weak then strong. Technology Regional banks

8 SPY -- setting new highs. Comfortably above uptrend lin. Divergence between Nasdaq and SandP. Divergences tend to be temporary. Will S and P roll over like the Nasdaq, or will the Nasdaq bounce as it is attempting mid-day?

9 The Dow (DIA ETF) at new highs. Showing Doji pattern today. Could set stage for a pullback

10 What is a doji? wick body wick A candlestick with virtually no body and all wick is a doji. A doji is a sign of indecision The market goes down from the open and up from the open but ends right at the open. Close A doji at a new high or new low is a potential reversal sign. To be a reversal the next bar needs to move in the opposite direction from the preceding bars.

11 International markets ex-us (VEU ETF) has pulled back from new highs Doji candlestick appeared at new highs before pullback

12 Upcoming events in December with potential market impact Dec 8 midnight Deadline for spending bill to pass or government shutdown Dec 12-13th FOMC meeting with a 93% probability of an interest rate hike to 1.5 % Dec 26 Jan 3, 2018 Santa Claus rally?

13 New features found under My Memberships/ Settings

17 New controls Which s would you like to receive? And would you like them as push notifications? Morning update Stocks to watch Webinars Promotional s The default is to receive each of these by . Uncheck if you would do not want a given . You can always change your mind later. Check if you would like a push notification. UNCHECK to suppress an . You will not be dropped from other s.

18 Important icons on your chart Most important Linear Regression, i.e., the channel the stock is trading in

19 Important icons on your chart Comparing a stock to... the market its sector its competitors All Stock Futures Forex CFD Bitcoin Index Economy Quandl You can check a market index type in a sector description or ETF symbol type in a competitor s company name or symbol

20 Featured Trades Featured trades have been selected based on having strong price momentum and other algorithmic characteristics Featured trades have no upcoming earnings reports in the next month

21 Investors Observer s Option Trading Framework Early exits with full profits Early exits partial profits 5 EXIT 1 FIND Featured Trades Trade Finder 2 CHOOSE Charts News Strategies Examining the chart to determine the likelihood of the trade being successful 4 MANAGE 3 ENTER Order types What you need to know about your broker

22 1) Why is this position going against me? Wall Street saying: Hope is not traded on any exchange. 2) How do I feel about the underlying stock or ETF now? 3) What is my objective now that the position has moved against me? New Goal 4) Translate your new goal into an action plan.

23 What you can do when a position goes against you How do we decide which of these is best?

24 What you can do when a position goes against you How do we decide which of these is best?

25 NEXT WORKSHOP Wednesday, December 20 4 pm Eastern time Featured topic: the Santa Claus rally. What to expect and what it means if it doesn t happen What leading firms are predicting for the markets in 2018 Following workshop: January 10, 2018, 4 pm

26 FIRING LINE What names would you like me to analyze? We can look at the support and resistance lines on these charts Also, a thank you! to the many of you who are completing our survey and letting us know what topics you would like covered in the future, and what is most helpful or what is confusing in our presentations. -- and let us know whether or not your are interested in earning more about candlestick interpretation.

Investors Observer Workshop. Wednesday, October 18, 4 pm ET

Investors Observer Workshop. Wednesday, October 18, 4 pm ET Investors Observer Workshop Wednesday, October 18, 4 pm ET Debby Clowney MBA, Chicago Booth BA, U. of Pennsylvania 20+ years options experience Worked on Wall Street Consultant for KPMG Workshop Coach: