PROMISING START

The market is seemingly uninterested in your FANG stocks, its all about the materials space. So many names up 5% or more here, on a big gap and go open for this sector.

Last night in After Hours with Option Addict, we did a top down of this sector, and singled out $CC, $PAH, $AA, $BBG, $CLF, $CMC, $FOE, $GGB, $HSC, $IPI, $POT, HUN, $TCK, $OAS, $PBR, $VALE.

This morning I am long $BIDU and $AAPL calls as well as shares of $CC. Still holding my $ES_F long from 1869 yesterday, and stopped my $NKD_F for breakeven last night (currently flat).

More later,

OA

About a month ago I made a bearish call against the dollar here, which ought to lend a helping hand to commodities and commodity equities. This is why I took a position in $WEAT, as well as $X and $FCX a couple weeks ago.

Oil is back above my key balance area after a false breakout, and false breakdown. I know Cashin mentioned $30.40, but mine’s a bit higher here at $31.40. Above this level, equities down is a tough bet.

As for banks, $GS has a September-like set-up developing that makes it interesting here as another indicator. It swept its lows today, but has been climbing back pretty strong off the open, while everything else consolidates down.

I’m still long from this morning, ES at 1869, but a $GS long down here is appealing. I may take this prior to the close.

More later,

OA

Back in early December, we noted that FANG stocks had broken their secondary trends. When this occurs, prices are likely to head lower, until they come into contact with their primary trends.

Here’s a quick look at $NFLX, which broke its secondary trend in mid-January.

It’s hard to get real excited about this name either way here in the near term. If you are looking to get long, closer to $70 would be ideal for a long of substance, otherwise, trade around this name on its way down to support.

THEY MANAGED TO SELL A PERFECTLY GOOD GAP UP THIS MORNING.

WHILE EVERYONE SCURRIES TO SELL STOCKS DOWN THIS MORNING, THIS IS THE LEVEL WE’VE BEEN WATCHING IN After Hours with Option Addict. 1880.

I WAS STOPPED OUT OF MY ES FOR -5, BUT RELOADED ONE MORE HERE AT 1869 WITH ANOTHER TIGHT STOP.

I am long the S&P here, going into tomorrow…with a relatively tight stop.

I’m a buyer of Japan tonight as well, via /NKD_F.

Have a great evening,

OA

$LULU has been one of the top performing names over the course of the last 3 months. While so many stocks are struggling to hold their lows, this is a stock that is trying to test last years highs.

Keep an eye on this stock, as the weekly/monthly chart shows an important price range that is being tested. A break of these levels would imply a measured move of over $40, if the stock trends away from this range.

This has been a great investment, but if prices are unable to break higher here, I plan to reduce my position.

OA