Debating an Add

So far, so good on the Starbucks short I announced here on the blog and inside 12631 yesterday. I entered a starter-size position at $77.29 with a cover-stop above $79.

The head and shoulder potential top is in play, and today’s weakness is happening even as the coffee commodity is seeing some profit-taking after a sharp run-up.

If the move below $77 holds I am considering a fairly aggressive add. Otherwise, I may wait for $76.27 to be breached to add to the short.

As for longs, I am not inclined to add exposure here given the weakness and many reversals lower in the tape today.

Bulls, however, still have a few hours to pull off their usual strong close.

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Apple has its iPhone 6 event next week, on Tuesday. Typically, the stock runs right into the event. However, this year there could easily have been traders who front-ran the front-runners.

This morning, we are seeing some aggressively profit-taking in the name, already having cleared the $100 level.

On the daily chart, below, you can see a rising wedge breakdown in play. While not an ideal short, I would lay off the long side until after the event.

Apple picking season may have already come and gone this fall.

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Another round of huge gaps higher in speculative names such as GPRO ISNS LOCO MBLY reinforces the notion we are seeing froth around the tape. Other issues of note seeing huge pops are biotechs: ACAD ACHN INFI. The issue with playing the highly speculative, frothy names is whether traders can avoid getting caught without a seat when the game of musical chairs stops, making a clean getaway instead.

While this is playing out, a massive Nasdaq name like AAPL is unwinding a bit, and TSLA reversed down off its own morning gap higher.

I do not have too many names right here I am eager to buy, instead opting to let the action spill over into the afternoon. Coffee is seeing some profit-taking, while bonds continue to fall.

What are you trading this morning?

The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.

1. JMBA
2. NFLX
3. TRUE
4. TSLA 
5. TSO 
6. WNR 

Please click here to continue reading

For you night owls out there, here is an amusing bit about the cloud, especially in light of recent “leaks.”

Feel free to opine on any market-related issues overnight, below.

Speak your mind, night owls.

UBNT is a short squeeze on the long side. The heavily-shorted stock can put shorts on the run with a move over $47.30, as seen in the form of well-defined horizontal resistance on the daily chart below.

And on the short side, keep an eye on COP CVX HD GM for weakness.

Drop me your top tickers overnight.

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