In After Hours with Option Addict, we’d been discussing 1940 since last week as a possible resistance area to initiate a market short. The idea was to ride that into this 1900 area, looking for a retest, if not more.
The banks are weak, oil is lower…but there is some divergent action out there today. Plenty of tech and momo are not following this move lower, including biotech. Meaning, as the market looks to move lower, many components are not making new intraday lows with it.
I mention this because this was a follow up condition we discussed in After Hours with Option Addict. This correction has followed the same principles that they’ve all followed to this point. This is the stage where if the market is divergent on the retest, you look to initiate a long on the retest.
Technically, this move could still trade down to 1880 and looks like it might keep heading that way. If things stay divergent, start to plan your spots.
I booked the $BIDU calls for a small win and haven’t picked my next stock yet. Might be easiest to stick with an index here.
OA
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Biotech is diverging???? Don’t see it
$IBB was holding its lows at the time I wrote this. Multiple lows at 263. Pretty easy to see if you have access to a chart.
Oh Yeh. You must have more accurate charts than me then. Ibb must not be down 2x spx. Dam these charts
Intraday action you fucking idiot. That’s where the divergent concept comes from.
We’ve discussed this so many times.
Fokin idiot? Ur a great Human being. Lol. I been tracking ibb all day. Was never diverging. Funny shit tho
Really wise choice on my part to buy puts in debt-laden, capex-cutting independent oil and gas companies. Everyone knows that in today’s environment, you sell all of your BP and XOM and buy the absolute fuck out of such stalwarts as COG and GPOR.
Ha ha, I can’t even make money shorting oil companies.
I just don’t see y we’d go higher & retest 1940/50’s
What catalyst would take us there? we tested the 0.5 fib retracement line already it looks like the Russia / 0PEC rumors are over so we’re back to risk-off.