CRITICAL WEEK COMING UP – WEEKLY WATCHLIST

It’s setting up to be a critical week next week. If you have any remaining paid time off this year, forget taking it over the holidays. Use it next week.

Two main things you’ll want to watch early on. First, the relative strength in the Russell and Nasdaq was an important change in market structure. However, Friday’s breadth readings we’re not as supportive of a confirmed bottom. We’ll want to see the Nasdaq and Russell stay away from last weeks lows…regardless of what the S&P and Dow decide to do. That divergence will determine if we set up for a year end rally, or if we continue to migrate lower.

Next, the social media stocks. Heading into October, I discussed avoiding these stocks at all costs, and money was setting up to rotate out of these names. While that was the right call, I am now more constructive on these stocks based on price action late in the week. Stocks like YELP and LNKD were on the verge of breaking down from multi-month ranges, but decided  to trap a few bears and rally instead. Take a look at this chart of LNKD. One of the most comical patterns in markets and stocks over the last 5 years has been the failed reversal pattern. If social media stocks, and other momo-stocks of last quarter catch a bid here, the market should set up for a nice year end rally.

My top picks: LNKD, GRPN, YELP, JASO, SOL, FSLR, YGE, WLT, CLF, X

That just about covers my Christmas wishlist for the remainder of 2013.

One last thing. I’ve never formally advertised this and normally wouldn’t care to do so, however there’s a significant opportunity that I want to extend towards those few individuals who’ve contacted me or expressed interest in my advisory service at www.tradingaddicts.com.

I’ve successfully helped thousands of retail investors over the 6 years I’ve been in business. Through the ups and the downs, we’ve beat the market handily in each of the 6 years in operation, while educating investors how to build better trading habits, manage risk, and build wealth in the financial markets.

As Trading Addicts takes a new step forward with a few opportunities I have lined up in the coming months, the membership fee has gone up in price. It’s not a significant hike, but an increase nonetheless. All existing members will be grandfathered at the old rate of $59 per month. If you have been, or are interested in a membership, I am going to extend the old rate of $59 per month for the remainder of the week. Semi-annual and annual memberships are also available at the discounted rate. After Hours with Option Addict members will also receive an additional discount for your elite social status.

For those that have asked, “What is the difference between After Hours with Option Addict and Trading Addicts?” At After Hours with Option Addict, the emphasis is placed on teaching a man to fish. We discuss how to locate trades, and I show members how to find and time some of the most explosive movements in stocks. Each day I provide members an edge from the perspective of market analysis and stock selection. You won’t find many individuals that have worked with me that will disagree with that statement.

At Trading Addicts, you get to trade with me, or follow my trades in real time. You get to see where theory meets execution, and how to manage money in the moment. The two services compliment each other, and in reality you truly are missing something not taking advantage of both.

If you are interested, please contact me at [email protected]. This will serve as the first and only advertisement I post. If you are on the fence, try it out. You can always cancel, and the investment is worth the return. I am one of few that genuinely care about my members, and am always there to help them beat the markets. Again, this offer will end soon.

For my members out there, I’ve never been as excited as I am now about the opportunities that lie ahead. Thank you.

Sincerely,

OA

 

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