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

ONE MORE TRAP

As mentioned in my last post, this isn’t the bottom yet. It is for a few select stocks, groups, and other instruments, but the bottom isn’t here yet for the market. Most importantly, the Put/Call ratio at 158%!

They’re buying puts into this rally. This is the final trap that needs to be set, and that is to engage all bears at the bottom of this range.

If you are trying to buy leveraged instruments, please wait to do so until prices are in the dirt. One more round of dirty prices lies ahead.

OA

 

 

 

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28 comments

  1. lplongo

    Great stuff, OA. Nice to see you not only caring about the AH w/OA peeps but the blog readers as well. Fly knew what he was doing bringing you on board.

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  2. JZ

    This is the scenario I am definitely playing for. Don’t oversleep the open this week.

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  3. traderconfessions

    Right on. One can never get it wrong by being patient.

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  4. ydauction

    OA, I heard put/call ratio is contrarian indicator to incur max pain.

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  5. purdy

    Long BMRN below 101, looking for 111.

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  6. canalsrb

    Long $WB here below 11.50. I want to see the Weibo again…

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  7. Jon V

    Sold my GILD and FCAU. I am still very cautious. I do see a bounce potential but I am staying in cash while the market is below a downward sloping 200DMA

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    • Jon V

      I think the odds favor a nasty bull trap to be set just as much as a bear trap. I could see a rally starting from 1867 that sucks in longs should be move up above 1950 and then the bottom falls out.

      In this scenario why not just stay in cash and put some day trades out at what seem like sentiment extremes?

      My difficulty will definitely come from knowing when the market switches from bear to bull. I suspect we have more downside first but am trying to be as flexible as possible.

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      • k_melancon

        Set price targets and be disciplined. if you can’t watch the market, I would be careful.

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      • Jon V

        I manage money full time so unfortunately I have to watch it 🙂 Sometimes I’m better off not watching it closely.

        Hourly RSI overbought readings for the market has been working well for short signals.

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  8. sidster

    Hi jeff,
    This may change things?
    This last week was not a good week for capitalism and free markets. While we were hard at work and everything seemed fine on the surface, there were major plans being drawn up
    and approved to change the face of the world we live in.
    If the United Nations get its way, all countries will have equal wealth,healthcare, weapons,
    technology, education, and
    political power by the year 2030.
    If you don”t believe me,
    read the resolution that was passed on Sunday https://sustainabledevelopment.un.org/post2015/transformingourworld#.
    In the past, the
    U.N has not really had the teeth to enforce such an ambitious agenda. This time they mean
    business however, and it has the
    backing of Pope Francis.

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  9. mattdc

    Good stuff Thanks OA

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  10. Jon V

    Gun to head I think we test 1900 again tomorrow, then flush below the 1867, bounce back up to 1895, then flush down to new lows. But what the f do I know?

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  11. momo

    OA, what would be your stop on LABU? Trying to follow along here. Thanks for doing a superb job!

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  12. freebie

    Jeff whats your take on Biotech? You switched long yesterday and called for it to lead the rally, but you also recently said it was going to crash like Tech did in 2000?

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  13. josh

    That extra retest of high 60’s es was another nice shake. I kind of feel like we could have one of those famous bear rallies.

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  14. mateo

    So good. Way to teach!

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