We had 4 weeks of trading in September but we didn’t place a trade the first week because our trade didn’t come to us and I didn’t want to force it. I netted about $1362 gains in my Fidelity account for the month. This was a successful month!

Market futures for Monday are very green as I type. This is probably due to some positive trade news with Canada. The major markets and the VIX are all near the 50s on the RSI line, which would indicate that the market isn’t overextended and will have some room to move (in either direction).

The trade of the week for this week is Cincinnati Bell Inc (CBB). If market futures are green going into tomorrow, I will be looking to buy this at near Friday’s close of $15.95.

The Gap: A gap is when a stock opens at a price different from the closing price of the previous session. Note that we are right at the bottom of a gap from July. This typically means that there isn’t much resistance in this area. We are at the bottom of the gap now so my expectation is that this gap will ‘fill’ if the stock pushes up. This is a good sign for us as buyers (assuming we buy near the bottom of the gap).

Also note that there this stock has turned around in the 17.50 range twice in the last 6 months. While it is not impossible to push through this point, I will not be holding if/when it does. There should be plenty of room for a nice 5% trade before hitting this level.

The RSI for this stock shows to be at 73.77. This is high and implies that the stock is overbought (overextended). I’m going to be careful at this level. Since past performance for this stock shows that it can ride this line for an extended period of time, I’ll watch the 10-day Moving average line as an indication that this trend may be reversing.

CBB is a Telecommunications Services company so the ETF watching for this sector is FCOM.