This weekend I introduced a new trading tool to both the Blue Line Premium and PRO Trading Services that displays Buy/Sell Signals based on price bars that are accompanied by divergences in any of approximately 10 underlying price momentum indicators. A mouthful, but oh, what a trading tool.
The highest and best evidence of the effectiveness of these signals is displayed on the charts below. Ignore the colors and numbers, just pay attention to the Buy/Sell arrows.
PLTR
Here is our PLTR option recommendations for 2024, without regard to any of the above Buy/Sell signals. Can you imagine the results if we added this fine tuning tool?
Premium Service
PRO Service
PLTR PRO - Pyramiding Expiration to Expiration
Let's take a look at one more example of using divergences for fine tuning our entries and exits, another big winner from our 2024 trading, this time in our Premium Service.
Gold
The PLTR trades above and the GLD trades below were generated in our trading services without regard to the trading signals highlighted in the charts above. As I see it, these fine tuning signals can only help and enhance returns going forward.
GLD - Premium Service 2024 Trades
Big Picture - The Week Ahead
SPY is a few days into a Sell Signal and sitting right on trendline support. A breakdown early in the week does not bode well for the market going into election week and possibly beyond. If support holds, we will be looking for a Buy Signal that could take SPY up to new highs. We have an option strategy for either case and expect to be sending out an action Alert as soon as the market tips its hand.
VIX - The Week Ahead
The previous Divergence Buy Signal (Sep 27) sent VIX from 15 to 23 (+53%) over seven trading sessions. The current Buy (Oct 21) has sent it up from 18 to 20, so far. If it matches its predecessor, VIX is headed toward into high 20's and possibly beyond in the week(s) ahead.
