A Rally, When You’d Least Expect It

In the market analysis segment of After Hours with Option Addict last night, we discussed how yesterday’s failed rally was not a bad thing, but rather more of a positive. With prices spiraling lower yesterday, the bears we’re lured into borrowed positions, only to get stopped out today.

In short, we agreed that the least expected move, or the most “discouraging” move today, would be to rally back to where markets opened yesterday. Genius.

I’m still trying to absorb set-ups that I like here, but my current themes still reign supreme. Solars and China stocks. FXI is up big today, and the groups that are following are not of the defensive type.

I’m sticking to my guns here, and watching YOKU for an entry.

More later,

OA

Our After Hours with Option Addict session will be geared towards sentiment cycle analysis today, and why a failed rally today doesn’t hurt market structure.

Also, I want to discuss these Chinese Internet stocks with you. We’ll review the set-ups, and how to enter, exit and book gains in trades like this.

If you are not a member of this service, you’re missing out. Our first group long from last week (YGE) is ripping. Use the gains to become a member today.

See you at the close,

OA

My favorite set-ups that I’ve been watching today are Chinese Internet stocks.

There is a common technical set-up across all charts, which signals an explosive move on the horizon.

I’m considering a couple longs here into the close. These set-ups are easy to manage here.

JP Morgan is positive on this group (SFUN, QIHU). I’m watching for derivative strength.

OA

As predicted and promised in our After Hours with Option Addict sessions on Thursday and Friday, we discussed coming back from a long holiday weekend to higher stock prices.

I’ve been loading up on longs last week, waiting for my sentiment cycle call to pan out. My short term target is 1667.

Plenty of strength to book gains into here. We’ll revise a market game plan tomorrow after the close.

BTW – Here is the Weekly Watchlist: BIDU, FI, LNKD, BYD, BHI, UA, MTW, RKUS, FSLR, VPCO, SUTR, JASO, FENG, APPY

OA

Per our discussion in After Hours with Option Addict last night, I have taken down Sep 4 YGE calls.

8/30/13 10:49:00:

Ardour Capital upgrades Yingli Green Energy Holding Company       Limited (NYSE: YGE)       from Hold to Buy.

They are clearly members of After Hours with Option Addict.

OA

Heading into a three day weekend, and WW3, there is no demand for stocks here today. This completely killed my request to “Connect with LinkedIn.”

I’ve taken off two positions here: SODA calls (-.55) and GMCR (+7.00)

My eyes are on YGE and JASO, but am losing interest to buy into this action.

OA