Not only are we in a very low market to stock correlated environment, but we’re approaching WTF lows. Something I’ve warned about for a very long time, but I’ve never seen them as low as they are here.
What does this mean and why does this matter?
Like most, you’ll check with the indices to determine whether or not you should participate. However, in this environment that’s the worst thing you can be doing. Remember, the market is having no impact on what stocks are doing.
As I’ve said, with the massive trend and flows towards ETFs and Indexed products, I believe this to be part of the pain trade moving forward. I think that constant bid over the last two years also helped to mask a diseased market, in which the growth component absolutely crashed in 2014…yet the SPY stayed on a slow trend up. It helped to make participants feel good about the environment, despite the carnage that took place in individual stocks. Moving forward, I think the pain is owning the index or ETF while nearly every single stock out there has outperformed YTD.
So here we are, the rotational elements of the market have not looked healthier in as long as I can remember. Yet, because the indices never illustrated the destruction that took place underneath the surface, everyone is caught waiting for it. Truth is that they got it already. All the things I warned of last year…huge short position, lack of exposure, sentiment…whether the market belongs up here or not, the outcome was inevitable. Higher was never expected, and that’s exactly why we got it.
Booking some gains today, looking at $FCX, $TSLA, $VSLR, $BLOX.
OA
If you enjoy the content at iBankCoin, please follow us on Twitter
So I should book my $LABU gain and move on, even with the beating I took today in it?
So in this text, you read a message pertaining to your LABU position?
Not specifically to $LABU, but I gathered from your post I should get out of ETF’s and focus more on the individual stocks I like, just has been your theme.
I speak often about rotations, yes? Wasn’t biotech one of them?
Yes sir. Appreciate the feedback. thanks.
If you aren’t sure what you’re holding for, where you plan to exit, etc…I’d sit down and figure that out quick.
$IBB test of $340. A flush out like today is just a bit rough.
That’s what you signed up for trading a 3x ETF.
Noni – -Here’s where you book the gain in your TNA position
OA – Any thoughts on $TGTX? Taking a bit of a beating today but looks to be stabilizing intraday… and that two year chart looks stellar. Maybe a false breakdown move today?
Also, $VRX earnings in the morning and it looks on the verge of a Discouragement break out here… any thoughts on this one?
In order to be false, I’d love to see it back into its range. If it closes here, on this type of volume…hard to find a positive.
VRX- intrigued on sentiment. Important name, nobody asking me about it.
Thanks, I was wondering if the question flow had died out on that one. Hadn’t seen much lately.
WBMD any1?
Playing earnings?
Yea, chart looks good
Been watching it but saw a little late put buying and stayed away. If you’re in…good luck with the trade!
Wonder if moving savings will trump earnings?
Scratch that last statement about “moving”.
Took some profits on my crude long from last week. Keeping a few contracts.
OA- The over 80% bullish poll on Friday still is a perfect indicator. “The Market” looks like it will close lower today. 🙂
if you want a nice quick trade short gold here and cover at 1310. Should get there by the end of the week.
Has anyone looked at Cameco (CCJ-N) a Canadian uranium play. Just wondering if money rotates into this space after oil stocks have their run? OA – your thoughts too?
We came across it a couple weeks ago as a watchlist idea….last time it was spoken of.
OA – Why FCX?
?
Why do you like FCX here?
Sector is right, copper looks awesome, chart looks right, profile amazing, oil turning up…can’t come up with a reason why I don’t like it.
man, has TWLO turned into a boring stock already??
How am I just finding this… an etf that tracks the Shanghai ($ASHR) with decent volume, and the front month options have decent spreads too. This could come in handy looking at the volume pocket above it!!!
Yeah, ASHR is a great one.
Bought that a few days ago (long options). Kinda like watching paint dry at this point.
Yeah, but with a tight weekly chart, dirt cheap I.V., and a nice pocket…. it’s high quality paint at least
Totally agree on all points. I’m in October 24 calls
Short VRX on lift above $25
Bot VRX Oct 20 Puts
XLU continuing lower….fade NFLX and FB here
Adding FIT and GPRO to the “Short the shit out of me” list
FSLR still dropping like a rock. OA, thoughts? waiting to see it start to put in a bottom.
Thoughts about what?
you still think it’s a good longterm buy?
If you can’t come to this conclusion on your own, why are you considering it?
GS — short this move back above 164.
FB – bought OCT 115 Puts
Sold LC TSLA and CYNO shares in long term accounts.
When preserving profits bites you in the ass – I laid down RPD and VSLR ahead of today 🙁
Speaking of folding, just picked up some FOLD here.
Also take a look at ATHM guys – to my eye this fucking stock is breaking out of a multiyear downtrend this week.
Out of TWTR short
Bot BABA shares in LT account
Talk about compression – BABA spent the first 75 minutes of the day pegged to 85, then Wham! Not sure I have seen a large name stay pegged for that long before.
$FB on IPO day set the record.
Actually, I think $BABA was longer. You’re right
Bought SKX and SEDG here. Cashed out ZBRA position for nice gain. Kicking myself in ass twice for watching and watching but not buying YY a couple weeks ago.
Bot TWTR in long term account
Took a beating on VRX puts + Sold BIS for small gain. Cannot stay short biotech in the face of VRX move.
Incidentally.. I recently came upon a site.. stockfetcher.com… allows one to create complex filters using plain language. Also can find charts that match a certain pattern and a few other neat features.
Hi OA – are you still holding your JD calls? Looks like they report tomorrow morning. Thanks
Yeah, and $ATHM you mentioned earlier.
Sometimes I feel like Tommy Boy
https://www.youtube.com/watch?v=c1EyN9xTK94
If anyone is looking at retail, I am eyeing ASNA today. Hourly looks like aversion right now, with a move from ~7.3 to ~8.2. Seems to be grinding out a higher low on daily so thinking might be a good spot to give it a try. Believe earnings due around Sept expiration (no date set yet as far as I know).
$WTW almost 74% short float! Seeing some call buying. Interesting and tempting
Still seeing lower highs for copper. Looks like it’s rolling over again
Zoom out. You’re missing the higher lows.
Bought DIS here. Love chart. Nice wedge. Small risk/reward.
Also in DIS for Sept calls