This Elliott Wave blog is dedicated to sharing Fibonacci ratios and other technical analysis for forex signals, index futures signals, options signals, and stock signals. Elliott Wave Principle puts forth that people move in predictive patterns, called waves. Identify the wave counts, and you can predict the market.
Wednesday, June 15, 2016
Elliott Wave Options Signals - WentShort NOC and MIDD
I went short Northrup Grumman Corp (NOC) at the close today. This stock has been on fire the past few months and price action suggests exhaustion. After the wave wave (3) high, price limped up to test that high in wave B, and has started to falter ever since. In addition, my custom indicators have confirmed a sell signal on the stock, so this seems like a great opportunity to put on a short trade. Here's the trade:
Buy to open July 15 210/220 put vertical at $3.68
I also went short Middleby Corp. (MIDD) at the close today as well. This stock has also been in fire the last few months, although the structure of this really could be interpreted as a 3 wave correction. If so, this stock is in some serious trouble moving forward. But this is a much longer term timeframe than what I trade, although if true it would still trade in my direction - down. I believe it's more likely and more conducive to sound analysis and trading to count it as a bullish move ending with Minor wave 1. Minor wave 2 down is now unfolding, and it should be a sharp and deep affair. I'm projecting it will get to the $114-$116 area within the next few weeks. Here's the trade:
Buy to open July 15 115/125 put vertical at $2.96
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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.