November 16, 2022

Cautionary guidance from Target (TGT) and Micron Technology (MU) doused the market in red ink today.

Defensive sectors like consumer staples and utilities were the lone areas in the green.

Akero Therapeutics (AKRO), a System P triggered trade from yesterday, picked up a little steam today and is up as much as 4.1%. This is right in our 2%-5% target zone for stock, or 20%-50% for options.

My research assistant, Chris, used the system to short US Bancorp (USB) today, waited for price to gain 1%, then exited the options for a 10% gain. This is a common tactic among traders using the system. They will either wait for price to gain a buck and then exit their position ("buck and out") or they will wait until 1% is gained in price and then exit.

These can be high time-value plays.

Otherwise, there is nothing on the docket for Thursday to which we should pay attention.

Kevin Marder

Trading Lessons
Introduction to the service (38:00)
Money management and risk management (20:27)
Bread and butter pullback (11:10)
Bread and butter pullback: Pt II (15:09)
Bread and butter pullback: Pt III (31:48)
Bread and butter pullback: Pt IV (30:16)
Bread and butter pullback: Pt V (1:41)
System R
Short-selling (25:53)
Wyckoff spring reversal (2:30) 
5-minute breakup test (8:01)
Screens (21:03)
System P