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

THERE’S A SCARCITY OF SETUPS

In as long as I can remember, there’s literally no setups out there to trade. I bought some GPRO yesterday and GOOGL this morning…but I’ve only got two other names I’d trade here and that’s all. CENX and GME.

When this happens, either the market is going to correct a bit, or the pain trade is in effect across most stocks. I’m thinking the latter with how strong breadth has been. A V reversal from the middle is a tough market set up, but we’ve obviosuly found eager buyers.

I am still positive on the outcome of all this. I have minimal cash available here, some underwater call positions, and a fully invested LT account. Time to set sail soon.

OA

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58 comments

  1. boyaj

    OA, quick question. What do you mean by a V reversal from the middle being a tough market set up? Are you saying we’re currently in the middle stage of the sharp recovery? Thanks in advance, and hope this question makes sense.

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    • Darren

      Think he’s talking about the middle of the range he was watching. It’s an odd spot to have a V reversal and it makes managing risk difficult.

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  2. wayne

    Mtum etf new high today.
    Momentum stocks leading

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  3. bushwacker2

    Nasdaq right near the midpoint of the range from 4678 to 4980. That’s also where the 50 and 200 dma’s are converging. Something has got to give.

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    • bushwacker2

      It’s also in the area where there was lot of supply in late April.

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  4. traderconfessions
    traderconfessions

    I’ve been watching GME too. Very nice technically.

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  5. thomasjefferson
    thomasjefferson

    Pulled the trigger on a little pre-holiday lotto with $IWM puts. The last time OA mentioned a scarcity of setups, things pointed down almost immediately. And I have enough calls in play from before the sell off that I wanted a little bit of insurance as this reversal completed day 3. Expecting a short day and probably some profit taking into the weekend, so hopefully grab a quick pop in the morning.

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  6. badduck

    Stocks have reached a permanently high plateau…

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  7. alty

    Highest 52wk New High – New Low reading on the NYSE in exactly 2 years from what I see, 7/1/14 was 359. Was a short term top back then.

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  8. BillieJones

    I’m starting to come around to the blow off top scenario. The digestion of all this bad news is impressive. Watch out fellas, that means its likely to go the other way.

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    • Noni Kavuri

      Brexit was about Xenophobia dude. That’s why England left. They don’t want the open borders EU policy.

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  9. MSGT HARTMAN

    The market always trades higher on flag waving holidays.

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  10. bushwacker2

    The key for me is to observe what happens if/ when the market tests the top of the trading range, where we’ll see sellers come in. Will the supply be absorbed by the buyers? That is want I want to see before I get bullish.

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    • bushwacker2

      What I want to see

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      • Noni Kavuri

        Are you net short going into the holiday weekend?

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        • bushwacker2

          No shorts. SPY, TLT, GLD, DBC and cash. 27, 36, 9, 9, and 19%.

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          • bushwacker2

            Best to maintain the 3 T’s: trend following, treasuries and tactical trading, given the current environment.

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  11. Richard

    Best setup I can find is in WTI / CHK and some other POS energy names.

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    • Bchu12

      Long wti?? Did you see the massive drop near the end of the day? Not sure if that’s bullish or bearish but that sure did trap a lot of crude longs

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      • Richard

        WTI the stock. I agree with OA on the China stocks. I was looking to enter LEJU but it ripped too soon.

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    • Option Addict

      I like the China stocks. A lot.

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      • MSGT HARTMAN

        Burritos are +8% for the year and there is a possible +25% upside from here.

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      • traderconfessions
        traderconfessions

        Which ones do you like? VIPS has a decent chart. What the hell happened to YY?

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        • Option Addict

          Tour JD

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        • MSGT HARTMAN

          1 Tencent Holdings Ltd.
          2 Taiwan Semiconductor Manufacturing Co. Ltd.
          3 Naspers Ltd.
          4 China Mobile Ltd.
          5 China Construction Bank Corp.
          6 Industrial & Commercial Bank of China Ltd.
          7 Infosys Ltd.
          8 Hon Hai Precision Industry Co. Ltd.
          9 Bank of China Ltd.
          10 Housing Development Finance Corp. Ltd.

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      • Carolina

        care to share a few of your favorite China names? Have a nice 4th. thx.

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    • imchrisbrown

      i’m in sdlr for a very similar setup. went back and forth between sdlr and wti, decided on sdlr. should’ve nabbed both.

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    • badduck

      +1 on shitty energy names. EVEP, LGCY, MEMP still long and still look actionable.

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  12. Z

    And it has nothing to do with the screen name – Z looks primed for a possible blow off fear of missing out/short squeeze top around 40 sometime in the next few weeks.

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  13. Z

    Facebook – has the July memories of 2013 – its “coming of age” massive earnings move, last year’s FANG summer, and two recent huge earnings reports and a history of good performances in July. A multi-month consolidation combined with a retest of recent lows a few days ago – and performances in the month of July – might make it a good set up.

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  14. traderconfessions
    traderconfessions

    OUTR.. consolidation..possible wedge B/O..

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  15. Bchu12

    Careful for pullback next week. Right back to pre Brexit level

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  16. Hat

    Yeah, ditto on not seeing many names. Maybe SCTY July 25’s?

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  17. Pip53

    OA what do you think of CENX? looks like its basing at a higher level and back testing the 200 day.

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  18. JT

    On Biotech front, any thoughts on TTNP, MYGN, QGEN, and UTHR setups for 3-6mo horizon?

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    • bchu12

      everytime we start talking about bios like this, it goes the other way. hope it has more strength this time around.

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      • JT

        XBI has been making higher highs and higher lows since Feb 9. Is there another pattern that would make you feel more confident than the strict definition of an uptrend?

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  19. Heckler511

    My shit’s in melt up mode today! RIG has been a big winner for me – OA does it look like it’s breaking out?

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    • bchu12

      JNUG son!!!

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      • heckler

        fucking gold mine monster

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        • bchu12

          yeh, better lucky than good sometimes. I felt good about gold run up after brexit but didn’t expect the last few days move. sold half today. will buy on any meaningful pullback

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  20. NON Solo

    You guys think the equities markets will ever have another down day?

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  21. greenlander1

    Short SPY at close for next week. Expecting some chop for the next few weeks at min before the market has enough energy to breakout

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  22. will

    Hi Jeff,

    Look at CMG .. Looks like bottom Forming .. Bullish Divergence

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  23. hitter

    Mentioned XBIT 3 times over last 2 weeks. See today’s news and Friday’s action. Quality speculation

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  24. mrcharlie

    OA I am liking KTOS alot after reading up on them. Got in under $4, thinking its good for $5-$6 heading into August earnings, any thoughts?

    -MC

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