BANKS REFUSE TO FUND $VSLR SALE

Shares of $VSLR, $SUNE and other derivatives are seeing some crazy volatility here this afternoon as news hits suggesting that banks won’t fund the loan for SunEdison after delayed annual financial statements.

$VSLR shares are down 22% after two halts, $SUNE up 16%.

Watching these names for a quick trade, as well as $CAFD and $TERP.

OA

Just got this a few minutes ago, after a Federal indictment yesterday and a significant rally in shares of $CHK today.

OKLAHOMA CITY – Police officers confirm that a man killed in a car wreck early Wednesday morning is the former CEO of Chesapeake Aubrey McClendon

On Wednesday afternoon, KFOR learned that the driver of that vehicle was Aubrey McClendon, the former CEO of Chesapeake.

Officials with the Oklahoma City Police Department held a news conference on Wednesday afternoon, confirming the fatality is McClendon.

Capt.  Paco Balderrama says police are still investigating the crash, but added that he was traveling at a “high rate of speed,” well over the posted speed limit.

Balderrama says McClendon died instantly from the crash. After that, the 2013 Chevy Tahoe caught fire.

“He pretty much drove straight into the wall,” Balderrama said. “The information out there at the scene is that he went left of center, went through a grassy area right before colliding into the embankment. There was plenty of opportunity for him to correct and get back on the roadway and that didn’t occur.”

The accident occurred less than 24 hours after McClendon was indicted by a federal grand jury.

On Tuesday, the Department of Justice announced that Aubrey McClendon was charged with conspiring to rig bids for the purchase of oil and natural gas leases in northwest Oklahoma.

The indictment claims that McClendon orchestrated a conspiracy between two large oil and gas companies to not bid against each other for oil and natural gas leases in northwest Oklahoma.

The conspiracy allegedly ran from December 2007 to March 2012, during which time he was CEO of Chesapeake Energy.

McClendon released the following statement on Tuesday, regarding the indictment:

“The charge that has been filed against me today is wrong and unprecedented. I have been singled out as the only person in the oil and gas industry in over 110 years since the Sherman Act became law to have been accused of this crime in relation to joint bidding on leasehold.  Anyone who knows me, my business record and the industry in which I have worked for 35 years, knows that I could not be guilty of violating any antitrust laws.  All my life I have worked to create jobs in Oklahoma, grow its economy, and to provide abundant and affordable energy to all Americans. I am proud of my track record in this industry, and I will fight to prove my innocence and to clear my name.” – Aubrey McClendon

I took down a handful of names that were red yesterday, into market strength. I picked off some longs in $GPRO, $CMG and $TWTR this morning.

All the names I tracked yesterday that were red are in beast mode today. Also, the stocks with high short interest have started to perk up. I just missed a long opportunity in $SCTY and am sick over it.

This may mean that this rally is getting a little long in the tooth. However, the markets desire to pick up laggards and not chase winners here is something we haven’t seen in many months.

Risk is in positive divergence mode, so I think a market downside bet here is still premature.

OA

Last night we had an 83% bearish poll in After Hours with Option Addict. This is only the second time I’ve seen a sentiment poll exceed 75% bearish. The last time was the evening of 8/25/2015, which was the evening prior to the biggest % rally of 2015.

With a few hours left in the session yesterday, the only commentary I found on the markets were traders climbing over one another to short, take puts, or get bearish into the bell. As mentioned here yesterday, there were significant bullish divergences across the board yesterday.

Breadth was extreme again at the open this morning. However, if we see strength today accompanied by any negative divergences, I could take some downside bets into that.

Picked up $GOOGL weeklies this morning…love biotech here.

OA

The speed in the market is starting to dry up. That’s usually a predictive signal that we’ve used coming out of market corrections and fast declines.

The speed stands out to me (or lack thereof), and the $VIX is trying to remain under $20. I think if it trades to $17, there might be a quick upside response, as the overall $VIX trend has been sloping upward since October. Thus far though, it seems the market likes the idea of losing speed here.

One other item I thought was interesting today, take a look at this rotation from treasuries to high yield. Hat tip @cfromhertz

I got stopped out of crude oil in my sleep last night and never got a spot to get back on. I’m dealing with some serious FOMO over here not being in this. Caught a massive move late last week and think there’s more upside coming. I’m on high alert for a dip buy.

Still like the action in biotech, watching china names too.

OA

At any point I see price acceptance like this in a stock or index, I am intrigued. There is multiple weeks of price consolidation, or “balance” in biotech stocks. Take a look at the $IBB:

I bought $LABU on Friday for just over $6. If the market is entering a grind this week, this is a must-try spot for a long.

I also like $ADXS and my $ATRA March Madness pick here for a individual stock play in the space.

OA