Options Trading Webinar: How to Read Sentiment Indicators
Sentiment indicators are one of the most important tools for any options trader, because they tell us what people are thinking – and from there we can make some predictions about what the markets might do. This is helpful for a few reasons: 1) Guessing is a fool’s game, 2) human behavior is predictable, and 3) history repeats itself, which is why I always look for familiar patterns to guide my trades.
For those of you who have been following me for a while, you know that I rely on sentiment indicators every day. In this week’s webinar, we discussed my favorites, including market breadth, put/call ratio, volatility index, rydex ratio and polls. As it stands today, many sentiment indicators are mixed, flashing either slight neutral to bullish signals.
We also covered the market structure and the amazing surge in the past month. Friday brings the jobs report, a reminder of how the market reacted a month ago and the rally that started this amazing bull run. I took some questions at the end and did a quick lightning round of stock analysis.
This Week’s Market Action
November got off to a strong start, with the uptrend from October continuing. However, the VIX is stuck in the 14-16 area, which means the wall of worry is up – and it’s pretty high – as traders try to figure out if this is a good time to enter. This was “Fedspeak” week with several Fed Governors providing their spin on the current situation. Chair Janet Yellen also testified in front of Congress Wednesday, and she pledged solidarity with her colleagues to keep interest rates at bay.
Here at Explosive Options, we continue to take advantage of the strong market trends, banking big wins with both BIDU and SINA. Our portfolio is up an astonishing 44% YTD!
Watch Bob Lang’s Options Trading Webinar On Sentiment Indicators
Watch the webinar to learn more about sentiment indicators and get an update on this week’s market activity.
If you love the insights you gained in this webinar, don’t miss your chance to join us live. Each week I host a FREE options trading webinar during to discuss recent market action, current plays and charts of interest, along with the trends that may affect future action. Join us live and get your chance to ask your own trading questions!
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