Wednesday, October 26, 2016
The first hit is always on the house.
Joined Aug 2, 2009
1,640 Blog Posts



Russian hackers infiltrated my system yesterday. They got me. Fuckers.

Waking up to that kind of a loss yesterday, I had very little to say. From what I can tell, its the newest version of Ransomware and nothings recoverable. I don’t even know how I got it. But if you haven’t yet, go backup your files, invest a few bucks into securing your machine. I deserve this for being a moron and for thinking I am smart enough to prevent something like this from happening.

On the day I bought shares of $CARA this morning at $7.40 and am long /CL again here for a bounce. I love $BIDU here, tempted to take $BITA, $VIPS, $DK, $STMP, $CIEN.

As for the market, I don’t want to talk about this fucking range anymore to be honest.  A rally cometh soon.

More later,


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This action is so hard to watch, I can barely stomach writing up a play-by-play, or finding anything intelligent to talk about here.

I bought Nov calls in $LN this morning. That’s all I’ve done.

I appreciate the lists of stocks you guys chimed in over the last few days. I’m watching the following stocks this week for entries…

$TDC, $DK, $STMP, $VIPS and $SINA.

After earnings, I am stalking $VMW, $ATI, $BIDU, $TRU and $TSLA.

Off to see about a nap.

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Yeah, its that bad. I came into the month looking for any slight reason to lighten up. My thoughts I had laid out were that I felt this month would be the first difficult month we’ve seen since the start of the year. I watched for clues, warning signs, etc. And despite the market staying low and slow, the rotation over the last few weeks just blasted me. 1% move in the $SPX, high beta momo stocks took 10-20% beat downs.

I have a significant number of positions expiring worthless tomorrow. The hard part is that the majority were profitable at one point or another. I froze in the first week of the month, watching as my stocks continued to rip…but then they slowly started to shift.

The good news is that it’s prompted me to build an indicator to try and determine when these shifts are going to occur. The bad news is that it cost me thousands this month to motivate me to start building.

Now I’m sitting here planning my comeback tour. Aside from shelter, butter, guns and burlap…I am trying to piece together a list of 10 stocks I want to take into YE.

I’d like to ask you, the reader, the same question. What are your top stocks you would engage here for year end? (Min 3, Max 10)

Also, After Hours with Option Addict patrons…I am unable to meet after the close today. If I have enough interest, I will happily meet later in the evening if that works for the majority of you. I would plan to meet at 8pm ET. If I can land 10 comments here saying “Yes,” see you then.

Again, sorry for the inconvenience.

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As noted yesterday, market structure looks great this week. This should be enough to carry the /ES back to 2150, or SPX to 2155.

I like the action in crude here as well. I took a shot at it at $50.15 just a few minutes ago. This should be a decent spot to pivot back towards $51, and possibly carry prices out of this week long range.

During all the recent anxiety into a 1-2% market pullback, the inner pulse of the market has stayed consistent. There was no real uptick in correlation (which surprised me) and market speed has remained unchanged. Upticks in both of these measures will get me anxious, but market movement without them is really just a better opportunity to stick to the script and keep doing what I’ve been doing.

The only thing that’s worth noting about the market is that the risk rotation I use has been reset. Therefore, jumping into the same old dogshit stocks might not be the best move here. Start with some better names, and move to the trash as the market leaves this range.

The last two weeks were an awful stretch for me, but I’ve dried my tears and am laying the foundation for a nice year end sprint to the finish line.

I’ll discuss the road map in After Hours with Option Addict today.

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Very little that’s inspiring about today’s flow in stocks. Expiration week generally leaves much to be desired, but October expiry in particular has some decent historical trends behind it.

That said, it’s also helpful that Gartman has turned negative towards stocks again.

Market structure, when zoomed in favors a decent foundation underneath current prices for the time being. spx30minToday’s close ought to set the tone for the week. $NYMO no longer oversold, but suggests upside risks are greater than downside risks here.

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