MARKET FEARS CONFIRMED; S&P CRASHES 2%

It’s early on in the day, but this mornings open in comparison with the last few market moves we’ve had like this is totally different. Yes, I’ve been invested now for months, but for such incredible moves in global markets, I’m blown away that this had much less impact than what I was bracing myself for.

My watchlist last night was dominated by more quality stocks than what I normally go for. If the market has perceived this as an opportunity rather than an event, I like transports and semi’s as a place to start some new positions.

I’ll update a few times as the day wears on. Keep an eye on breadth today.

OA

Folks, terribly sorry. I am unable to meet today. I have been trying to coordinate something that came up, and I can’t make it work. I am not able to meet after the close for After Hours with Option Addict. However, I have posted my watchlists in the After Hours with Option Addict blog and will discuss these set-ups with you on tomorrow’s session.

Thanks for your understanding, sorry for the late change in schedule.

OA

After Hours with Option Addict participants, today I’m logging on immediately after the close. We’re starting a few minutes earlier than usual today only. I’ve prepared a list of stocks to offer up as instruments to beat this market into submission.

Join me today, 4PM Eastern. Sharp. I have to leave a little early today.

Thanks,

OA

Not much to speak on this week, as we’re coasting in for a grind til later this week. I haven’t traded much, I haven’t said much, I’m just here observing a whole lot of nothing.

On the day, I found the $IBB move pretty interesting. This is the 4th time we’ve tested this lower trendline this year, and we continue to see reactions off it. This range is still wide enough to stay pegged here into the election though. I’ve still got a few positions, as well as some $CNCR I picked up for an investment last time we were down here. I love the way those components trade. In fact, those are really the only ones I am interested in.

Everything else looks the same. Thanks for posting the ideas in here this week. I love that we’re slowly getting back to that.

OA

Couple weekends back, we discussed how last week would likely be a “pain trade” set-up in the market last week. Looking back, seems like that’s exactly how it went down.

Throughout the week, the market would rally off the open for about 30-40 minutes, drawing in longs, then selling off into the close each day. With the exception of Thursday, of course.

So the weeks activity was built to trigger a more bearish posture, or to whip you off the ride before the move. Now you’re in a predicament here, because you can either chase this up at higher prices, or wait it out for something better.

These types of set-ups give you a chase, or another week of pain. I haven’t been able to determine if people were really eager to chase this up yet, and my initial thought is that they weren’t. That being the case, moves higher are what triggers the most pain here. We’ll discuss this through the week on After Hours with Option Addict.

OA

Feels like this last week has been a time where participants have all moved to one side of the boat. The anticipatory action in the $VIX and now $CPC are a decent tell of what the expectation is here.

Small caps are strong, oil and banks are bid, speed is at multi-year lows and correlations are down. Should be an interesting week next week.

My trail stop hit on NQ this morning for a +46. I’m in again here at 78.

OA