Very interesting action on the open here. Crude is stable and the energy patch is stabilizing, and despite the market weakness social media stocks are paring back losses and getting green. Lots of bullish option flow behind those stocks this morning as well. Funny to see these stocks wait for a big market drop to halt their declines.
1170 in the Russell was the floor last week, and at this point we’ll use it as a ceiling. If prices don’t get north of that level, that may be an actionable spot to short.
More later,
OA
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attn granpa: I just booked those KO Dec 44 puts. In at .42, out at 2.05 … Was a great call on your part. Thanks, man!
I still need MOAR to get my share of the 42’s. Congrats to you Unc. Back awhile I made a bunch on $AMKR, which you put me on, thank you very much. Great community. That’s how it’s supposed to work.
I’m pulling for you, granpa. Hope to see KO continue to lose it’s carbonation…
Nice work.
Can you pl. share your outlook for $BABA for see expiry? Do we still have $120+ target
“BABA has lost it – all gone to shit”
Should we salvage any Dec premiums possible?
What do you own?
BABA Dec $125 calls.
GPRO Dec $85 calls.
You are looking to extract premium out of those?
I have Dec12 108– I can sell and get half back. Would you do that?
No, not here.
Have a large position and what is possible 3-5 cents/contract!
Large positions in near dated OTM call options?
they weren’t near dated once, when we rolled nov calls to dec BABA.
But the Nov gain paid way more than the Dec loss, yes?
Shorting any and all social media stock on any bounce…it will be short lived. TWTR broke out of its long term base yesterday as did many other social media stocks. Sorry to burst your bubble. They are toast and bounces should be shorted. GOGO chart also broke down out of large base. Broken as well. SHORT THE BOUNCES.
Here we go again. Shake out the bulls and rip without them. This theme is getting familiar.
The chart breakdowns are not a “shakeout”. You need to learn the difference btwn a breakdown vs. shakeout.
Just my take but I personally think the high probability play is TWTR remains range bound somewhere between 32 and 42. EVENTUALLY a pattern will setup and a direction will take place but for now it has made its move to the downside and will remain rangebound.
The one thing that may cause it to behave otherwise is a combination of sentiment and oversold but the reason I say rangebound is a lot of resistance in the 40 area and not a ton of price history around the current price. I love the risk/reward of a very long term TWTR play via the stock adding down to about 33 before I look to cut it on a move below 32 until it sets up again later…
The possibility exists that it snaps back and slingshots above 42 and bulls trap the bears but I think that’s the long odds play.
To clarify… I’m long term bullish on TWTR adding shares down until 33 stop around 32. The point about the long odds was on timing. Sentiment may have the long term bullish setup but I think there will likely be time for a better entry for those playing options. Maybe a symmetrical triangle begins to form lower timeframe.
http://2.bp.blogspot.com/-7O5ZE8nshUU/VIce5RhkP9I/AAAAAAAAAdo/tiCgWQZyBv8/s1600/twtr.jpg
gold hit resistance at the 100 day moving average…of course, it was quite a move today and I am sure some traders profited off of it handsomely
i don’t see resistance until 1250
Shorted YELP @ 51.67 (burp)
Added to GOGO short @ $14.79 (extra Burp)
I’m confused…you said you put those on earlier?
You said “real time”. These are real time.
You posted on the previous blog you bought these at 9.50am and now you post again? Whatever , I really don;t want to litter up this stream with this so I’ve gone long YELP here @51.10, the main reason because your short and a great indicator.
Chief, what are you up to here? Long/short anything on the day?
$73 to $51… hey, now that it’s at $51, let’s short it! lol. Good luck with that one. #lovethelong
Shorted FB @ $75.53 (burp)
How those working out for you? (Belch)
market finding some buyers.Shorting at the open was a rookie trade.
+1
+2
What do you think about UGAZ with a stop below yesterdays low?
Just bought UWTI, and I got several folks buying up UGAZ here too.
OA – please forgive my being a schmendrick & asking this type of question, but what target do you have in mind for UWTI? I’m very interested in this….
$10 initially. Please ask anytime.
OA – sounds good. Thank you!
It’s short covering time. Looking for 0.5-1 day rally to short. HYG continues to look nasty. Stocks should follow junk bonds into the hole after this little relief rally.
Good action on LULU – if only someone had mentioned that this would be a good long term trade….wink wink
Nic call on FB OA. I grabbed some yolo 77s.
Rubber kind of meets the road here at $75.50 on FB. I’d like to see a nice spike up off this level.
Making good money in $ true which Jeff screened out for us recently. Thanks!
OA, outside of the YELP long which looks good for a quick pop I’m focused on the ag plays, MON POT MOS. No positions yet but they look like good set ups. I also like NUE and ZEN
Definitely going all cash by the close. Only thing I have is FB anyway. Day trader’s paradise.
OA, do you still own any TWTR BABA stocks ? or sold all ? Thanks.
Long CRTO Jan 40s, ETR Jan 82.5 puts, considering GERN again @ 3.50
Short GOGO HERE with stop 3% above. Textbook triangle breakdown yesterday and unable to get off the mat today. Also, I don’t think this bounce in the market this morning will stick. $RUT will close under 1170. You perm-bulls are getting sucked in.
Better be hoping for a V reversal, which is possible I guess. Lot more to go in the day, but I will take the TNA I bought this morning!
agree 100%. Its funny to watch the same old “buy the dip” crowd getting long again up here as oil continues to look as bearish as bearish can be. Let ’em buy…loaded for bull 🙂
So, go short into the hole with a stop that’s less than the ATR. That’s a real winning trade there.
Put a short on gogo yesterday and will not cover until $11. Overvalued.
If you look at weekly on gogo you see the technical breakdown and follow through yesterday morning before the bigger drop. Low risk short imho.
Dr. Gupta – I’m a big fan of yours! What’s your current opinion of the medical marijuana stocks?
Yahoo Finance shows recent institutional buys. But then again, its Yahoo Finance.
SUCKER RALLY IN MARKETS HERE…BULL TRAP
Sucker’s rally indeud…people have been conditioned to BUY THE DIPS! BUY THE DIPS! lol
Jan put option in the $RUT. Will not close above 1170 level. Thank you.
i see psycho Sybil is trying to take over the blog talking to himself, probably paid by Goldman Sux to try and mislead the suckers
Funny that one IP address makes up 75% of the comments this week.
Id ask you to try and filter that out but its too good a contrarian indicator!
Hi Jeff,
JDST 40 again by Jan ?
haha. ur kidding right? it won’t even get to $25 by then
Not sure what to make of this rally in the IWM. I’m going to keep it small until I get a better read.
this time of year seasonality wise i would not be making big bets short. love this mkt zaction, yesterdays heros are todays whiners
Each cycle there is always a storage name that rips — my sense is WDC is this cycle’s candidate
NMBL! 20% short; small cap.
Sure is a purdy P&F chart on NMBL — quite the base. I love the 29M share count in the face of the outsized short position.
http://stockcharts.com/def/servlet/SC.pnf?c=nmbl,P
$TRUE
OA, do you still hold TWTR BABA stocks ? or sold all ? Thanks.
be careful, this market is determined to chop you to pieces. Take profits when you get them or scale out.
+1
Jeff, since it looks like RUT will close above 1170 today, what is your outlook on the Russell going forward?
2015 is setting up to be epic.
moving IRA accounts into small cap fund on the close…I posted an article on dispersion awhile back which speaks to the narrowness of the market and how stockpickers are due for a glorious year in 2015
Suckers bounce…using it to buy QQQ puts here
Today’s rally used to position out of longs and engage short side. Smart money that is.
Energy stocks are not leading the rally.
Took some QQQ puts as a yolo weekly, small hedge.
Added some SINA and TWTR here. Down but not out!
The RUT looks as rangebound as grassfed beef
BOT $TWTR based on the blustering rookie short comments on this thread. TY !!!