Hard to ignore this chart here. Even if you aren’t a believer, or prefer not to trade what some consider to be dogshit, I’d rather bet against the guys hiding out in this as a short.
The spot is amazing, the space above is worth exploring over time. 34% of the float is held short.
Last night in After Hours with Option Addict, we discussed a market setup coming into the day. Open up, ramp, sell-off.
That seems to have been what’s happened here today, and this dip, I bought.
Crude is breaking out here, breadth is awesome, and that ramp in the Russell out the open negated yesterday’s divergence. If that reads like stereo instructions to you, know that in this market action, I am well pleased.
Bought some more $COP, $AMBA, and $MBLY. Wanting to buy more $CMCM and $FTNT.
Booked gains in $BAH and about to book $TWTR.
Life is good.
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I am buying this stock down here, where so many eyeballs have been bestowed upon it.
Long Nov 11 calls.
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Last weeks poll was a great tell about the environment out there. Even if you are/were bullish, many were heavy cash going into the Fed. The reaction you saw was fast, which provoked you to chase the market up into the weekend.
We start off the week with a gap. I love when this happens, because that is usually what activates a pain trade sequence.
My thoughts here are that those that chased the market up late last week are probably not feeling as great about this, and are potentially being stopped out or taking things off into this move lower. More importantly, this is forcing shorts to initiate lower…just like the last few times we did this.
This gap down happens to be a retest of last weeks balance in the indices, which is the retest one should buy. With as quiet as it is out there, not sure if this read is most accurate, but that’s what I am thinking. I don’t see bulls out there cheer leading this dip. In fact, those that are shopping seem cautious. Bears are most vocal here from what I can tell, and that’s always a layup.
Stalking $ADRO, $GME, $SOHU and $VMW today.
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Pershing Square YTD returns as of 9/20/16. In a year where you can throw a dart and win, it’s unfortunate to see such under performance.
Hedge funds in general haven’t trailed the market this bad since…
1998.
Maybe I’m right about this overall pain trade. T.I.N.A. Buy the stocks you sold last year for +20% higher prices and get it over with already.
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Between this and my poll this week, which showed a heavy cash position in the retail crowd, it’s lonely out here.
