VALE and RDC

I found new uptrend stock that bounce off their support on MA 20. Today they go higher and will test their resistance line. The entry time should be today or for breakout play, we should wait until the stock break through the resistance line. For VALE we can buy Dec 28 Call or 29 call.

for RDC we can buy Dec 25 or 27.5 call. If you prefer bigger delta then you should go for more ITM call.

As always, dont forget to set your stop loss and do the good money management.

US Stock will likely to move higher after Ben Bernanke state today that the Fed will keep interest rate low for extended period. So the dollar will still be moved into stock and commodity. As long as the dollar go down, the stock market will go up. But becareful when the Fed start to give signal raising interest rate, the stock market will likely have big correction because dollar will be moved out from stock.

I have a thought that now the usa economy still in recovery mode but stock market has gone up fast. When usa economy start to grow fast, the interest rate will be raised, dollar move out from stock, then stock market will most likely go down. So Dow theory is correct, stock market discount everything.

Best regards

Snip