Playing Pence’s Comments Conservatively

In tonight’s video, we talk about the trades that set up in the 30-Year Bonds and Gold Futures. Unfortunately, we didn’t see the follow through we were hoping for in Gold, and the Bonds ended up stopping us out to the tick.

We talk about a slight variation using the Volatility Box for those of you looking for a less aggressive way to play the 30-Year Bonds.

We also had an “Important News” activity happen, with VP Pence saying that the U.S. won’t stop practical cooperation with China. This added some volatility in the markets, that triggered entries which gave you both T1 and T2, using the Aggressive Volatility Box.

However, for us, we played the news more cautiously with the Conservative Volatility Box, which meant sitting on the sidelines. We have noticed in the end, playing news events conservatively has proven to be more profitable in the longer run, compared to an otherwise net scratch P/L.

Using our Futures Volatility Box, we had a total of 2 trades that set up today, for a net P/L of -$600

Earnings Corner

With our batch of earning plays from yesterday, the big winner was LRCX. We were looking for the stock to move $6 in our direction. It ended up moving closer to $32! We built that trade using the Smarter Earnings tool, which has proven to be quite valuable during this earnings season.

For companies that reported earnings either after the close today, or tomorrow morning, we have a few noteworthy candidates that stand out.

Below are some price targets, based on if the pattern that tends to happen repeats itself, and we get a move in the direction towards our bias.

We have added in some new labels in the Smarter Earnings indicator that now displays not only the average bullish or bearish dollar move (for a Gap N Go), but also the lowest moves.

We’ve found this to be more accurate, and useful, than using the V-Score in trying to plan out trades.

TickerPreferenceBiasEarnings Lowest $ Move  Avg $ Move 
COFGap N GoBullishBeat $            0.11  $          1.46
EMNGap Fill –  – 
GILDGap N GoBearishMiss $            1.00  $          1.62
INTCGap N GoBullishBeat $            1.70  $          1.73
VGap Down FillBullishBeat –  – 
VGap N GoBullishBeat $            2.45  $          2.45


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