The first hit is always on the house.
Joined Aug 2, 2009
1,847 Blog Posts

iBC Presents: The Option Addict, Volume II

It’s been over a year since I have last visited the iBankCoin penthouse. I see that the furniture has been upgraded, and a few new faces walk the halls. I’ve gotten comfy in the corinthian leather chair, and have used Fly’s gold and diamond crusted chalice to pour me a cup of Dunkin Donuts coffee. I’ll be providing a little content throughout the day while “Le Fly” returns from vacation. He will be back later tonight. Therefore, I’m here to help you bank coin until further notice.

It appears as if I will be trading from IBC headquarters as the S&P makes it’s glorious print of 1000, and the Nasdaq hits the 2000 mark. Futures are strong ahead of the market open, and crude oil is picking up where it left off last week, ripping higher.

As I approach the market this week, there are a few important themes that I am following. First is energy/materials. I am currently long oil service stocks and steel, as the energy and materials patch will need to play a little catch up this week. The OIH is poised to open up pretty strong, and at the open you ought to take a look at some of the following names I highlighted on my Weekly Watchlist this week. I am looking for breakouts of these recent consolidation patterns… NBR, CNX, and CNQ. The chart below will illustrate the same pattern across all three stocks.


Several oil service stocks will show the pennant formation that has developed over the last week. With crude staging a big comeback over the last few sessions, these stocks ought to be easy breakouts to trade this morning.

In the materials sector, keep a close eye on steel stocks via SLX. A few names that stand-out to me in this group are STLD, SCHN, AKS, and GGB. I am carrying a position in STLD.

The next group I am watching carefully is financials. They made a quiet, but important move last week, making a run up to their recent highs. With tech stocks quieting down last week, I think financials play an important role in keeping the momentum running for the bulls. On a breakout in the XLF, I like the idea of taking on some front month calls in MS, or STT.



As you can see, I’m not going to play any part of the bearshitter role here and tell you why you should fight this tape. Rather, I implore you to make hay while the sun is shining.

I’ve got a lot of content planned today, to fit several different trading styles. I’ll be back with an update shortly.


The Option Addict

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One comment

  1. The Fly

    Good to see you back

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