The S&P range we’ve been following on the weekly and monthly charts was tested today, and ushered in a firm reaction.
Downside pockets and gaps were filled, no lower lows in price.
Be ye warned that this was not the same response as we’ve seen the last few times we’ve been down here. The velocity of this move is much more tepid than it was back in September when I was calling for new highs.
I nutted the fattest futures trade I’ve had in many years here. At this point, no reason to sell yet other than to keep trailing the stop.
The Russell has started to break away from the pack here, which is never a good signal.
More later,
OA
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Today was opex for the /CL Feb contract. No fuckery by the Bulls. Will likely add to SCO if we drift higher into market close.
I expect the /CL March contract to provide the spring tradeable short squeeze. I expect the squeeze to start from 25 – 28/barrel. Will also start legging into gasoline futures.
Nice one Heffe
Surprised by the RUT comment. Thought small caps generally lead to the upside/downside, thought leading to upside would be a good thing? I guess you mean that on a bounce from this particular kind of point it’s not exactly what you want to see, you want to see the quality lead.
You may have misunderstood…it was leveling off while the rest of the market was trending. It’s up now.
Either way, quality leads at bottoms. Compare the RUT/SPY in October. Our IWM trade wasn’t til End of Oct.
OA,
Are you still bullish on AMBA? Still holding?
I have shares of $AMBA, yep. Fucking drilled me these last few weeks.
i agree. Futures, you keep a tight stop. call you sell. you’ll get burned with decay holding into tomorrow
Jeff aka oa check out the jan 2017 call buying on twtr
Massive
OA, is that your brother-in-law in the ad on the right who loses less because of you? You should run a post seeking “unique” testimonials for your ads.
“The Option Addict: capturing special memories with your solar panels since 2013.”
Funny story about the guy in that pic.
One day I’ll write about it.
I connect with the man in the ad with the pipe. That’s gotta be Uncle Buccs, right?
haha. You’ve inspired a new ad idea.
Why do you connect with him the most?
Grandpa Rabbit smoked a pipe like that. Still remember his John Deere certificates.
Cool bro, russel still looks like a bag of dicks.
I guess for those using 2008 as an analog, a very minor rally here, followed by another plunge lower to end January fits.
and if we are sticking with being in 1999 from the original 98-00 analog?
Doesn’t really fit the current action, does it?
I guess there was a reason to sell by end of day. Phew
Stop with the analog nonsense at this point.
“At this point.”
Man, that shit gave daily predictions from late August til early December. You guys can all eat a dick.
Buy the open?
Why. 2008 analog in full effect
Offered a small at of SCO just now at 203.00 w/ 202.14 bid. The offer was hit instantly.
My take: The March contract will trade into the 20s. Currently at about 30.30
Natgas hit 50% retrace at 2.09 in the pre. Nice bounce for a thin market. However I am short Natgas from the event high and added when it broke 61.8% retrace.
I’ll look to cover some today hopefully below the 50% retrace.
WYNN w/preliminary results. Headlines better than expected. Hoping the shorts cover to free up margin to short bigger whales….
OA, or anyone, regarding LABU – it doesn’t run into the same monthly rollover issues as say UGAZ or UWTI, correct? So it is considered “safer” holding. If I wanted to hold for a year for instance it would just be subject to the market and fund expenses, nothing else? Thanks.