I don’t do a lot of general market recaps/commentary, mostly because I feel like that arena is fairly saturated and there are a lot of people out there doing it much better than I ever could (chess, I’m looking in your direction). I always pay attention, but rarely comment on the matter; however being that I don’t have anything else to write about this evening, what the hell?
Let’s take a peek at $SPY:
After slicing right through the former resistance at 134, it’s right back into that congestion zone between 131 and 134. Keep in mind, this is the same congestion area where $TNA recently flagged oversold, so I am of the belief that prices will find a bid somewhere in here.
The past few days I have been talking about looking for a pullback to get into some additional positions…well, that pullback has started. I took advantage of the oversold conditions last week through getting long…fairly heavily. Combine that with my binary strategy flipping to $SPY, and I’m feeling like this is a very important opportunity for the bulls to take hold.
If we get oversold again I will likely take a more direct and aggressive approach with either $TNA stock or $IWM calls.
If price cannot find support above 130, I’m afraid that we will be headed back to the lows, AND MORE.
Today I sold half of my $THLD position based on a long-standing profit-taking/loss mitigation rule that I employ. I’m not discouraged by the behavior of the stock, but a rule is a rule.
I sold those shares at 6.56.
I am really pleased with how the two selections I made based on weekly chart patterns are performing.
First, $RGR was being downright rude in the face of the heavy selling this afternoon…refusing to come to the party donned in burlap and a blue blazer. As others spoke wildly with cracker crumbs falling from their mouths, this stock behaved like a gentleman and closed the day with tophat and cane, up over 1%.
Long: Guns. Long: Ammo. 27% short interest in that one as well.
Next up is ridiculously priced discount air carrier $SAVE. Now, in order to use this airline, I will have to drive to fucking Latrobe, PA in order to fly to Del Boca Vista, Phase 3 (via. Orlando) to see my parents.
But the flight is $59?????? Two BAGS can’t fly for $59.
Are they using old Aeroflot Yakovlev Yak-40‘s? What the hell is going on here?
Anyway, I sold 1/4 of my $SAVE position at 20.32 today.
Now that these two stocks have started to display some relative strength, I’m looking to buy more shares on pullbacks.
AND in a fit of riverboat gambling, and for the sake of complete transparency, I went long $VXX weekly 18 calls 10 minutes before the close. I started seeing the $MCO rumors, along with watching the selling accelerate/volatility spike, and I made a quick decision. I have very specific targets in mind with this trade, so I’m going to be watching this closely tomorrow looking to grab profits and get the hell out of there if the opportunity presents itself.
My best to you all.
4 Responses to General Market ($SPY), My Take
“Long: Guns Long:: Ammo
27% short interest in that as well. ”
I don’t know that code. Could you pls elaborate.
Hah, it’s just a commentary about the times we live in, where the safest investment is to own guns and ammo. I’m using $RGR as a proxy for that investment.
27% is the amount of short interest in the float (according to the PPT)…which is (as I’m sure you know) extremely high. Basically, after falling almost 40% off the highs, this one had great short squeeze potential along with a nice looking pattern on the weekly chart.
Thanks for reading.
I’ve got similar thoughts on the $TNA. I’m currently long $TZA and $QID. Maybe a bounce into the weekend after a bit more of a sell off?
I continue to get positioned one way or another for a short term move and keep getting burned. Not a very Pavlovian response, that’s for sure.