GROUP THINK

On August 24th, when you woke up and soiled your office chair as you logged into your trading account, I spoke with you about regardless of the situation the market faces, time is the best healer of moves similar to what we saw leading up to and including that date. That three day drop, the breadth signals and all other stats immediately registered the 1998 analogue I wrote about here a few times in late 2013 and 2014. On Tuesday that week I wrote:

I don’t for one minute doubt that any of this is over, or that we don’t take out a low at some point, but over the next two months, your ultimate trading signal for market gyrations will be to figure out what the pain trades will be. We did this in 2011 for two months. It was a lot easier to predict than you might think.

2010 and 2011 were referenced as a possibility on my post from 8/24, but after a few days, they were ruled out for a few reasons. Let’s focus on the price comparisons first as to early signs that this was not going to play out like 2011.

Here are the charts. I’ll let you compare, and we’ll discuss in the chat the distinct differences and why they mattered.

2015

1998

2011

Feel free to discuss.

OA

For over the last 6 weeks, in order to stay on top of this market and call many things out in advance as I have, it has required observation and concentration around the clock. By the time we hit Friday, I am simply out of gas.

There’s a lot to be thankful for. I spent a considerable amount of money in the last few weeks and the returns have been incredible. I must express gratitude towards myself for speaking with confidence, providing detailed descriptions of possible outcomes, and taking on the right risk at the absolute critical time.

Today I will be spending my morning developing my watchlist for next week. I’ll be shopping for top conviction set-ups.

Right now, without much shopping…$PYPL is my top dog. I’ll have a list of several that we’ll discuss on After Hours with Option Addict.

More later,

OA

So, you have to be aware at this point that each day, movement has happened to trigger action on your behalf.

Smoke screen moves to the downside, accumulation at the lows, rippage to the upside.

If you aren’t seeing this, you are in denial.

By the way, isn’t that about where we are sentiment wise?

As discussed on Tuesday…play biotech for the ramp yesterday. Sell it. Then buy the next dip.

It is a mandate you buy here. $297 was $IBB support.

More later,

OA

I bought shares of $ONVO for $2.83, in preparation for the 3D squeeze that is currently underway.

More later,

OA

Not a horrible auction just yet. It may get worse, but here are the important parts thus far.

Breadth is neutral. Thus far we have an interesting intraday divergence between NQ/TF. TF exploring highs, NQ exploring lows.

Momentum stocks are weak.

$IBB is weak, but will offer a good buy opportunity today.

Crude up.

USD/JPY pegged. Still. This needs to resolve this range quickly.

Something needs to firm up here, be it biotech, energy, or momentum stocks. Buyers need something to engage here, or they’ll lighten up. Again.

More later,

OA