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Wednesday, August 27th
“Behind every exquisite thing that existed, there was something tragic.”
– Oscar Wilde
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Markets Today
🌏 Asia-Pacific: Down
🇪🇺 Europe: Down
🇺🇸 United States: Down
🛢️ Oil: Up
⚡ Crypto: Up
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Insiders can no longer hide their trail when they move…
Here’s how you can benefit from it!
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Major Market Events
- Trump’s Fed power play faces legal test — Court fight looms over plan to oust Governor Cook
- Nvidia earnings on deck — Results due after the bell, key test for AI momentum
- India tariffs bite back — New duties raise costs on U.S. goods from textiles to farming
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🤔 My Thoughts
A Small, Defined-Risk Shot at LMT
Rumors, a clear level, and a simple call spread
There’s a big rumor floating around right now: the government taking stakes in defense names.
On yesterday’s Profit Panel, our pros even cited Secretary of Commerce, Howard Lutnick’s comment about taking stakes “like they did in MP Materials… and Intel… with defense companies like Lockheed Martin.”
I don’t trade headlines by themselves — but I do pay attention when a hot tape lines up with a clean chart and a clear risk line.
For me, Lockheed Martin (LMT) checks those boxes today.
Here’s how I’d keep it simple:
1) The setup. LMT is about 26% off its 52-week high and has a well-defined band from earlier this year. As I said on the show: “If we can show any sign of bullishness… break back through that little consolidation we did earlier this year… where we kind of make tops around $480.” That’s my reference area.
2) The risk line. Again, from the show: “Me, personally, I would take a small risk now, and stop out if we made a new low.” That keeps the loss small if I’m early.
3) The tool. I like a defined-risk call spread here: buy an at- or slightly-out-of-the-money call, sell a higher call. Same expiration. This costs you a small debit and caps your downside risk.
If LMT pushes back into that prior range and momentum sticks, the spread expands. If I’m wrong, my loss is capped at the price I paid to enter the trade.
4) The behavior. I’m not swinging for home runs. If I get a quick base hit, I’ll take it. If price fades and threatens my line in the sand, I’m out. No arguments.
Why this works for me: it ties a loud policy rumor to a calm plan with defined risk.
Tape strong? Good.
Levels clear? Even better.
I let the chart confirm the story, not the other way around.
We’re back at it with more clean setups and straight talk. Join me LIVE right now — the room’s already open.
Click here to watch the on-demand replay!
And don’t forget to register your spot here to join us next time we go live!
To Better Trading,
Alex Reid
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