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Using RSI to Create ROI

Using RSI to Create ROI

Contrary to popular belief — and yes, I admit I’ve contributed to that belief — I’m not solely a “gut trader”…

I’ve been around long enough to determine most of the high-complexity algorithmic techniques are complete BS…

But there are a few tried and true technical indicators with clear benefits to predicting market moves.

The one I’m watching closely this week is RSI, or Relative Strength Index.

RSI is one of the simplest indicators out there. It measures the speed of price movements for any given stock or index.

RSI operates on a 0-100 scale. Basically, when it’s below 30, it is considered oversold… And when it’s above 70, it’s considered overbought.

But RSI can do more than point in those two directions… It can also identify general trends in the market.

Like today, the daily RSI on S&P 500 futures is 37, and looks to be turning up from a higher low… Further pointing to the fact that this market is, or trending toward being, oversold.

The last time we saw this action, the S&P was about to go on a 15% rally.

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I’ve been screaming all year that the bottom is coming soon and a reversal to the long side is imminent.

Do I feel that in my gut? You’re damn right I do.

But we can also see it in the RSI.

So, when I recommend getting long in positions, it’s because I can see which way the wind is blowing, even if the mainstream media tries to make the opposite seem more likely.

I also have second tool in my belt…

The smartest money in the market.

The insiders, CEOs, hedge funds… I’m watching these whales and picking up every move they make, specifically dialed in to their bets of over $1 MILLION in options trades… where every million controls over $100 MILLION of stock.

I’ve been following them closely every day, and my scanners are picking up far more bets on the long side than the short side.

By doing this, my newest strategy has seen a 139% gain over four months this year…

And we just closed ANOTHER WINNER in SBUX calls last week.

I just went live presenting the full details of this super strategy and how you can get on board following the smartest money in the world.

If you missed it, catch a replay right here.

Now, let’s see what the watchlist holds this week, shall we?

The Kings Corner Weekly Watchlist

We had a solid day of signals in the Trade Room already today with winners in MARA, X, and AAPL.

Here’s what else I like this week:

  • Silvergate Capital Corp (SI)
  • KE Holdings Inc – ADR (BEKE)
  • Yum China Holdings Inc (YUMC)
  • Schlumberger NV (SLB)

My absolute favorite of these is SLB. I love trading this stock, and I’ve made a lot of money doing so over the years. My free trade is to:

Buy SLB October 21, 2022 $46 calls (for $0.30 at the time of writing).

As always, we won’t be tracking this free trade idea on any online portfolio. So, if you take it, you’re on your own.

And in general, if this idea makes profits of 50% or more, you should consider getting out of it for a decent gain.

But if you have some success with it, or with any of the watchlist stocks, feel free to email me at TradeKings@banyanhill.com and tell me about it.

Happy trading,

Andrew Keene
Editor, Kings Corner

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