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

AT THE GATES OF HELL

Here we are. Things are starting to slip. As it pertains to equities, the Russell and Nasdaq are at the gates. If the selling starts, it will get fast. Should you choose not to react, you wake up to a 2% gap down in addition to late day selling.

preparetodie

In terms of fear, naturally it is going first. The VIX has broken its range.

scaredshitless

Despite buying off the open, it wasn’t met with the same conviction that last weeks rallies were. I thought we’d prolong this move until next week, but here’s the bulls last test to toe the line.

Financials look like absolute shit, which has the Dow and S&P leading lower. Start a plan now if things are to get fast. Don’t freeze.

I’ve booked positions in CDK and IG for gains and JRJC and VIP for losses. I’ll use the proceeds to get TZA if we slip, to provide a little relief while making adjustments.

More later,

OA

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138 comments

  1. kidstock

    Time for the Fed to announce their plans to unwind their massive bond portfolio…

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  2. Danny1980

    No signs of a reversal yet. I’m all cash after taking a 1.6% overall loss today. Just a wait and see moment today.

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  3. thomasjefferson

    My $TZA hedge is becoming one of my larger positions. And looking to add.

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  4. ffunluving

    @gasman, hope you’re in $UGAZ as we’re finally gaining traction. Last week at this time it sold off to new lows after running up. Seems to be more volume this week and a better draw down report tomorrow. Are you bullish short term for natty or would you sell the news tomorrow? thanks

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    • gasman

      Hey ffun, I booked my natty futures into this strength. Bought GASL this morning and just bought a starter in RRC. not interested in playing the storage numbers after a double digit move.

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  5. Jacked Rabbit

    Bear flags and pennants into volume pockets below. It’s the same trade principle as getting into consolidation patterns with volume pockets above. Gasman and others have nailed that PEIX trade, as an example.

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  6. Quality Control Inferno
    Quality Control Inferno

    Fed still has the beige book card left to play today. I expect nothing short of a rally off of it. The nature of the rally will tell the tale.

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  7. Raul3

    I propose we look for the 2pm beige book to put some direction to the afternoon

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  8. linmoo

    If the QQQs break the low, I’m eyeballing GOOGL puts. Epic pocket below.

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    • rangersfan

      i%20thought%20i%20was%20the%20only%20one%20who%20noticed%20that.%20lots%20of%20room%20for%20this%20to%20drop%20to%20440%20if%20it%20gets%20fast.%20i%20got%20puts%20and%20will%20hold%20through%20earnings%2C%20if%20anything%20it%20is%20a%20hedge.%20

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  9. traderconfessions
    traderconfessions

    Market down 300 and GPRO is up. That pretty much sums things up for this market.

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  10. Krono

    Short Googl, sbux, aa, ual and still holding SPY puts purchased on yesterday’s morning bounce. Life is good! All the warnings signs were there folks. Some simply refused to accept it.

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  11. trung

    Jeff how does a LULU short look to you?

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  12. shawnji

    Going to all cash this Friday when XOMA 4s expire worthless. CRTO 40s likely the same. Still holding CYTK Feb 5s from way back, holding those as it’s house money now. Looking for some quick scalps on 1-2 day rallies. I should have held F Jan 15.5 puts another day, would have been an easy 3 bagger. Hmmm. Staying careful.

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  13. toast

    All cash. This doesn’t look good guys.

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  14. nocturne

    USO showing a change in character. A close above 18.00 today would engulf monday and sunday overnight. I have been making my weekly short decisions on thursday closes.

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  15. Green Machine

    Here comes oil!

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  16. Quality Control Inferno
    Quality Control Inferno

    Final hour rug pull forthcoming. If not, then huge gap down. FED didn’t say anything to stop this.

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    • Option Addict

      Are you betting on that here?

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      • Quality Control Inferno
        Quality Control Inferno

        I’ve been short for a few days and haven’t covered a single contract. I’m convinced. The data is all shit. This beige book bounce was so predictable, but the beige book didn’t really say anything we didn’t already know. There may be some short covering going on here. It’s now or never for bears.

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        • Quality Control Inferno
          Quality Control Inferno

          Alright so maybe I covered all January expirations. Looking to roll puts here though. This rally isn’t enough to scare me off just yet.

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  17. hesitation

    go oil and XOM calls blazing. SLB reports tomorrow fyi

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    • shawnji

      At first blush I saw XON and I was about to high-five you. Well, a gain is a gain.

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  18. nocturne

    1/2 of the remaining Monday and all of last Friday vanquished in 30 minutes. Still gotta see how it closes

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  19. nocturne

    During opex for December uso dropped Monday. We did not take out the previous Friday drop. This is shaping up to be a change in character.

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  20. nocturne

    FOMC meeting was the week off opex in December

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  21. Hawaiifive0

    OA,
    Just got some BYD. How far to the top of the volume pocket?

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  22. ThomasJefferson

    $BZH seems to have responded well to testing the $17’s. One hopes it visits again so I can give it a swing.

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  23. BlueStar: Contrarian Investor
    BlueStar: Contrarian Investor

    Wake me up in few days after we breach the December lows….zzzzzz…zzzz.

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    • Option Addict

      Do you wait that long to take action? Or do you nibble in anticipation?

      It seems the wait for confirmation trade is dead, as October suggests.

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      • BlueStar: Contrarian Investor
        BlueStar: Contrarian Investor

        I have been short since close to December highs. I have not made a trade yet this year. I will let you all know when I do something. Confirmation only died because it took three central banks to stop it in october. ECN BOJ and PBOC.

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  24. chiefton15

    this last 30 mins is crucial .To be honest if we hang out here I’ll more nervous going into tomorrow short than I was today. I want to see a flush.

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    • Option Addict

      You set to hold overnight either way?

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      • chiefton15

        sold the VXX and lightened up on some shorts. I don’t like the close may bounce for a couple of days before going lower. Will look to add again though as I think lower prices are coming.

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  25. nocturne

    Added back 10% of the oil short that I took off yesterday. Couldnt find a reason for 2pm ramp.

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    • Quality Control Inferno
      Quality Control Inferno

      Wasn’t today the close of the oil futures contract? I could be wrong on that. Seems like they ramped it into the close there for that very purpose.

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  26. shawnji

    I hope the flush comes… on Monday when I’m changing brokerages.

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  27. Quality Control Inferno
    Quality Control Inferno

    Alright let’s out a couple of weeks on NFLX, LNKD, YHOO and BABA. Oh and AMZN. It gets fast below 285.

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  28. King Fizz

    Up 80% GOGO Feb puts as my #1 short play keeps GOGOing down. Buckle up. Those 200 dma’s in the indices are magnets now.

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  29. hesitation

    Hollow candles into opex is bullish! setup for the flush after 1/22 ECB.

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  30. Hawaiifive0

    OA,
    What about my earlier question on BYD? Did I ask it wrong? I usually jus listen to the recordings, so trying to ask here.

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  31. nocturne

    Quality,

    “reply” link doesn’t work on my android. Jan 20th is the final trading day for the Feb (current contract)

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  32. Jon V

    Jeff – Are you looking at a major top? I know you said you were holding off on making that call, kind of like a reservation I guess while everyone else made theirs.

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  33. chiefton15

    this is a rare pattern forming in the indices, I played for the flush and didn’t get it so what it looks like now is we get a couple of mini bounces before the move lower. You usually see this set up in individual stocks but not the indices and a crash scenario is very uncommon but I thought it was coming today. reduced my YEN and TLT to 1/2 positions at the close but am definitely looking to add back in the next few days.

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  34. Good Shepherd

    Oil 52 wk Range: 44.20 – 107.50

    as of this moment the Feb contracts sits at 48.81.

    There is so much room in this trade for even a hint of mean reversion its goofy. $UWTI is set… It traded around 15 from 11/13 to 11/25, which during the same time oil was around 75.

    WHAT IF WE HELD ON TO THIS FOR OUR GRANDKIDS. 1share : $10000. (I bought a lot of shares) Not If on this one, but When?.

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  35. ammy hour

    Bluestar – RICE still attractive and a name you’re looking at down the road? Post-apocalypse…

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  36. MSGT HARTMAN

    Last year the market dropped 6% in Jan. Then up 10%.
    Beware the Fed. They hate Day Traders.

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  37. Option Addict

    Got a decent NQ long on tonight. Anyone trade futures in the evenings?

    Yen interesting too.

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    • Linmoo

      Wish I did…seems like that is where all the buy side moves are coming from lately. Hope we don’t get sold into again. Thinking OIH might be a play tomorrow.

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  38. chiefton15

    this market isn’t for the faint of heart.

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  39. chiefton15

    triple bottoms/tops almost always give way. 4280 NQ.

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  40. nocturne

    Quality,
    Options on feb crude contract did expire 1/14. Futures contract last trade date is 1/20. Appreciate your response to me.

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  41. chiefton15

    the thing that’s surprising me the most is that VXX isn’t up 10% or more. Not sure what to make of it?

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  42. UncleBuccs

    OA – some long forgotten alert for GLD @ 120 texted me this morn. Does something like DGLD appeal to you at all?

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  43. chiefton15

    4100 on the NQ is weak support but the last there is IMO before the trap door opens.

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  44. chiefton15

    4100 is your line in the sand, if we break and close below it it will get fast as 4080 won’t provide any support. Nice move up so far.

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  45. bchu12

    Ahhh… After a 6% run up, still bearish on gold? It’s been break one level after another. Isn’t it time to just admit it’s a good long?

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  46. deluxe186

    Ah the one thing i can trade….always catches a bid jan feb….its a short in spring into the summer dulldrums

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  47. chiefton15

    not looking good, hold on to your hats.

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  48. Taxmonster

    Bought GDX if anyone cares 😀

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  49. Trent J

    JEFF – That profile in NUGT is serious biz to the upside.. What do you think of our old BUY NUGT here this time?

    This post is not a joke. 🙂

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  50. chiefton15

    back in the VXX at 35.25

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  51. Taxmonster

    Stop Loss at 20

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  52. Quality Control Inferno
    Quality Control Inferno

    Chief- that NQ starting to look real dicey. Fully leveraged and pressing shorts here.

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  53. Trent J

    Bought a few ITM QQQ calls right here.. Only because it was the exact opposite of what I wanted to do, and lately everything I do is wrong.

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  54. chiefton15

    this would have to be a monumental stock save at this point. The bulls are defending this area with everything they have

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  55. linmoo

    Sensing a massive amount of negative sentiment around here. Respect the opinions of all you guys…but wow. It seems worse than the October lows, let alone December.

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    • Jon V

      The only issue I have with this statement is the # of annoying comments is down and the CNN fear and greed index isn’t nearly as low as the Oct lows. I suspect we have more downside.

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  56. chiefton15

    place your bets! This is the spot…higher or lower?

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  57. kidstock

    Panic is in the air….my bet is the “Invisible Hand” steps up and keeps the bull alive (for now)

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  58. chub

    wow. $twtr just took a dump

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  59. Quality Control Inferno
    Quality Control Inferno

    Whoosh that was fast.

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  60. hesitation

    I want to puke. But my bias is still up into next week. crude will hit mid 50s.

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  61. linmoo

    Anyone else notice how GOOGL is trading today? Been super bearish since November while the market rallied, and now it’s sitting on the edge of a reversal pattern like it doesn’t have a care in the world.

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    • Quality Control Inferno
      Quality Control Inferno

      Actually looks like a little bear flag to me. No stock will be safe.

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      • Jon V

        I’m still holding this one. Valuation is reasonable. Will add if it goes to mid $400’s

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  62. chiefton15

    a lot of people looking for the save to come but nobody’s stopping this today IMO I thought we were going to get this yesterday. Still have some decent short exposure….but not as much as I would like

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  63. Thomas Jefferson

    What the hell is going on with $BZH? Can’t find a word of news for a 10% flush.
    I took a tiny position in February calls when it was at about $17.80. My $16 in the money calls are about to be out of the freaking money.

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    • only

      All the homebuilders are down. KBH reported the other day and their numbers sucked. The others all followed. BZH actually led the move by a few minutes. Looks like one of the weaker stocks in the sector.

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  64. Quality Control Inferno
    Quality Control Inferno

    Going to be interesting later today to see what kind of margin carnage this SNB action has caused. When do they do margin calls for Forex?

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  65. berniecornfeld

    I think this blog post needs to be update to “In the parlor of Hell” as I am pretty sure we have moved past the Gates.

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    • berniecornfeld

      Maybe Hell’s Kitchen? Hell’s Den?….Next week it can be “Hell Hot Tub”

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  66. bchu12

    risk stocks getting clobbered today. might have to add to BABA and TWTR

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    • Jon V

      These stocks are still in the proverbial “fag box”. I’d focus on what’s working which isn’t a ton of stuff right now.

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  67. shanefin

    did you all notice number of biotechs making 4+% down moves vs up moves is at an extreme.

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  68. Jon V

    Picked up some TNA here today. Playing the “stick save” trade

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