Use This Red Line to Find Dozens of Money-Doubling Opportunities Each Week

When I'm out on the golf course, I can usually play 'em straight and long - on a quiet day, that is. But when the wind whips up and and starts to mess with me a bit, I've got to switch up to a shorter game to keep the wind from burying my handicap.

Playing stocks isn't any different. (You knew I was going to say that, didn't you?) What works on a calm day will bury you when the "weather" gets lively. When you change your game, you get much better long- and short-term results.

I'm going to show you how, right now. And you don't have to just take my word for it; I'll give you the name of a stock - one I think is good for a double-digit gain - to try out this new technique.

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How to Play the Short Game

Let's clear something up: When I say "short game," I don't mean short-selling stocks. That's a totally different story for a different day.

I mean short as in a short time frame.

Normally, I spend a lot of time talking about the importance of the 50-day moving average (MA) of a stock or the market. I mean, this is the most important indicator that you can watch. It's the only indicator important enough to be represented by one of my "10 Commandments of Trading."

With my brand-new Infrared Index, I can identify specific trigger points that tell me where a stock is anticipated to be headed over the next 24 hours. Click here to find out...

But for all its importance, the 50-day MA is not the indicator that you need to be looking at first these days. The market's winds are messing with the trajectory of those trades. Those winds are calling on all traders to make an adjustment to their game in order to create profit opportunities.

My key adjustment? Dial in on the activity of the 20-day moving average.

Whether it's on a stock, an exchange-traded fund (ETF), or the market's indexes, the 20-day MA is now determining when traders are taking action in this fast-moving market.

This is why I've been referring to the 20-day moving average as the "trader's trend line." This trend line is literally generating dozens of short-term trading opportunities a week as the market whips stocks around like a hummingbird in a hurricane.

Right now, we're doing well with stocks breaking below their 20-day MA, whilst that same 20-day MA is trending lower. For confirmation, I look for the kicker: I make sure the stock's 50-day moving average trend line is also declining.

But, like I said, here's one for you to try today that fits all my criteria...

The Proof Is in the Pudding - Here's a Spoon

HP Inc. (NYSE: HPQ) shares have been in a downward spiral since the market top in July, but the stock wasn't able to recover like many others in the tech universe. The bearish trend was accelerated when the company's earnings report disappointed - that brought in plenty of analyst downgrades.

We saw a rally from the August lows, when the stock tried to tread water above its 20-day MA, which was declining. Shares finally broke the 20-day moving average today and are heading towards $17 or lower.

To cash in on HP's woes, we've got a couple of attractive options. I like the HPQ Oct. 18, 2019 $19 put (HPQ191018P00019000) because I've got a short-term target of $17. That would put a cool 100% gain in your pocket... and, I hope, make you a believer in the power of switching up your time frames.

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About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

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