MACD as a trade signal starring the Notorious A.I.G.

ok,ok, maybe not quite as bad as the Notorious B.I.G. Notorious_BIGbut some may argue a close second. Bailout Nation, gonna leave some scars of a different type.

I am long $AIG in my Swing account and was doing some chart review for all my current positions this morning.

I elected to share this marked up Daily chart to show how it has presented several signals (Buy & Sell) using the MACD indicator:

AIG_MACDNow recall that I mentioned about that I am long the stock – I am certainly paying attention to the MACD topping action here (and starting to roll over a bit). I am short some February 39.5 Calls against the long stock (covered call) so I have some cushion. Of course it could do many different things from here including sideways or more up (sounds good, lol).

Hope your week is going well and you are ready for Options Expiration on Friday.

Leave a Reply

Your email address will not be published.