GREAT AUDIBLE

@sentimenttrader sent out a great chart via twitter earlier today:

“I guess they expected a lower low. Small traders moved to a record bet against stocks this week”

Back on October 1, after seeing the question asked multiple times over the course of the week “Lows or no lows” the audible was called for the perfect pain trade set-up. A quick excerpt:

I said at the open “This is it.” It sure is starting to feel that way.

The more I think about this whole thing, the more I’m convinced that the only thing both sides of the trade are watching for here is the lows. All analogues call for a break of the lows, right? Except for the 2015 analogue?

The ultimate pain trade here is that while everyone watches the lows with bated breath, the market has already bottomed.

What’s so interesting is how critical it was to set the bear trap heading into that week.

I’m pretty well past the market analysis portion of this exercise. If you are in from early October, you are in good enough shape to manage. Correlations fell through the floor this week, and when that signal hits, its time to start picking stocks.

I’m feeling generous tonight, so here is a free preview of After Hours with Option Addict. In this, we discuss market conditions going into next week, watchlist candidates, some historical analysis and Q&A. It’s 60 minutes, feel free to check it out if you are curious about the service.

All sessions are recorded and archived, and there are static links to Crash Course material from old events.

PS – If there were ever a time in my career that I would entertain going to a presentation about trading/investing, it would be now. Especially coming from a guy that’s offered some timely calls in moments of need. Get a ticket already. It will be worth every penny.

Be back this weekend,

OA

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