FORGIVE ME, BUT AHWOA CANCELED FOR TODAY

Folks, I apologize but had some things come up that I need to attend to.

No webinar after the close today (10/19/16) but will pick back up tomorrow as usual.

Thank you for your understanding.

As noted yesterday, market structure looks great this week. This should be enough to carry the /ES back to 2150, or SPX to 2155.

I like the action in crude here as well. I took a shot at it at $50.15 just a few minutes ago. This should be a decent spot to pivot back towards $51, and possibly carry prices out of this week long range.

During all the recent anxiety into a 1-2% market pullback, the inner pulse of the market has stayed consistent. There was no real uptick in correlation (which surprised me) and market speed has remained unchanged. Upticks in both of these measures will get me anxious, but market movement without them is really just a better opportunity to stick to the script and keep doing what I’ve been doing.

The only thing that’s worth noting about the market is that the risk rotation I use has been reset. Therefore, jumping into the same old dogshit stocks might not be the best move here. Start with some better names, and move to the trash as the market leaves this range.

The last two weeks were an awful stretch for me, but I’ve dried my tears and am laying the foundation for a nice year end sprint to the finish line.

I’ll discuss the road map in After Hours with Option Addict today.

Very little that’s inspiring about today’s flow in stocks. Expiration week generally leaves much to be desired, but October expiry in particular has some decent historical trends behind it.

That said, it’s also helpful that Gartman has turned negative towards stocks again.

Market structure, when zoomed in favors a decent foundation underneath current prices for the time being. Today’s close ought to set the tone for the week. $NYMO no longer oversold, but suggests upside risks are greater than downside risks here.

Had to post this tonight in response to the countless articles and such I am asked to interpret, weigh in on, and other various forms of garbage I am asked to dumb myself down to suffer through each day. Guy reminds me of J Krull from long ago. This is now my favorite trading related video of all time.

What if? Lol.

The $NYMO traded as low as -76 today, that I saw. Only checked in on it near the days lows.

Today, a good basket of quality stocks is outperforming the rest of the market. For this month, it seems that high beta growth has been torched while value/quality stocks have had the relative strength. This is why overall market correlation has remained low while the market has traded lower.

In other words, a rotation has taken place in these last couple weeks.

When a risk cycle gets reset, you have to immediately change your thinking. If you attempt to play a market bounce with your old favorites, those favorites won’t be as quick to respond. When too much damage occurs, time is required to heal and restore confidence.

If your thinking has already been to trade boring ass stocks….as you were.

Favorites: $TSO, $WFC, $PYPL, $SBUX, $TGT, $TSS, $CELG, $DAL, $FSLR, $ANF.

….and $TWLO.

Volatility in the currency market triggered the selling of equities yesterday.

I bought British Pound futures here at 1.2195, as prices have stabilized a bit.

Feel free to troll, bro.