Subject: Stock Option Trading Idea of the Week from Terry's Tips - How We Made 613% With Apple Options In 7 Weeks

Terrys Tips newsletter
     

Dear Friend,

The Apple portfolio has now made 613% over the last 7 weeks and today I would like to tell you more about it, including every current position that it has.

Terry

 
 
Option Tip of the Week

How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months

Here’s the linkHow We Did It

To accommodate those folks who signed up for our free newsletter after Labor Day because of the Seeking Alpha article, we are extending the special offer we made last week for an extra week.

The Special Offer – To Celebrate the re-establishment of Auto-Trade at TD Ameritrade/thinkorswim, we are offering our Premium service at the lowest price in the history of our company.  We have never before offered such a large discount for the Premium Service.  If you ever considered becoming a Terry’s Tips Insider, this would be the absolute best time to do it.

And now for the Special Offer – If you make this investment in yourself by midnight, September 18, 2012, this is what happens:

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With this one-time offer, you will receive all of these Premium Service benefits for only $75.95, (normal price $119.95). I have never made an offer anything like this in the eleven years I have published Terry’s Tips.  But you must order by midnight on September 18, 2012. Click here and enter Special Code Auto12 in the box located on the right side of your screen.

I feel confident that this offer could be the best investment you ever make in yourself.  Celebrate the resumption of Auto-Trade at TD Ameritrade/thinkorswim with us.  But do it before the September 18th, as this offer will not be available after that day.

I look forward to prospering with you. 

Terry

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Andy's Market Report
The market absolutely loved Helicopter Ben’s announcement of QE ‘till infinity.

The Federal Reserve chairman came out Thursday with the decision to increase policy accommodations by purchasing mortgage-backed securities at clip of $40 billion per month. The program, as stated by Bernanke, is open-ended by design. Once the Fed feels comfortable with unemployment levels the program will be terminated. Unfortunately, no one is privy to what the Fed deems is “substantial improvement” to the employment picture.

But one thing is certain, Mr. Market loved the news. The S&P rallied 1.6% immediately following the announcement and gained an additional 0.3% on Friday. The Russell finished the week almost 3% higher.

“It’s better to sell bonds and get into something that is going to give you a return. The Fed is forcing investors to get out of safer investments; the search for yield is going to drive up the price of commodities, including oil,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago.

I don’t think anyone can disagree, but they have been trying this for several years now and nothing has changed so far. In fact, bonds have only pushed higher since the Fed enacted their policy of ongoing fiscal policy of quantitative easing.

And as you can easily see in the chart below, with each injection comes less effectiveness.


Will this latest injection actually lead to a reversal? Anything is possible, I guess.

Remember, September is the weakest month of the year, although you would never know it by the rally we have seen so far in September.

But the market is now officially extended. All of the major indices are in extreme levels not seen in years. Typically when this type of situation occurs we see a short to intermediate-term pullback going forward. I expect to see the same this time around.
Moreover, we are entering one of the weakest periods for the market.

Just look at the chart provided by Jason Goepfert of Sentimentrader.com.


Monday is the 10th trading day of the month, so starting Tuesday we will be entering a stretch of seasonal bearishness. Indeed, the stars are aligning for a pullback. How much of one no one knows. I wouldn’t expect to see a severe pullback, but we will reevaluate the extent of the pullback once it actually occurs.

We must remember that the latest rally is based on rhetoric from the ECB and Federal Reserve. But we must remember that they have been consistent with their message for several years now and yet nothing has come to fruition. Injections have occurred, but economies are still flailing. If the economy continues to weaken expect to see a deep correction. However, we also must remember that even a 20% correction is still considered normal. And after a rally of over 100% since 2009, a pullback should be expected.

 
Overbought/Sold Condition Report
Overbought/Oversold as of September 15, 2012
    •    S&P 500 (SPY) – 85.9 (very overbought)
    •    Dow Jones (DIA) – 87.8 (very overbought)
    •    Russell 2000 (IWM) – 89.9 (very overbought)
    •    NASDAQ 100 (QQQQ) – 91.3 (very overbought)

 


     

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Sincerely,
Dr. Terry Allen
Terry's Tips

 
 
Week 237
September 17, 2012
 
In This Issue
Option Trading Idea of the Week
Andy's Market Report
Overbought/Sold Condition Report
Testimonial of the Week
Terry's Book

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