GLOBAL INFLECTION POINT

It’s not just the $SPX…

Earlier in the year, we talked about the nature of how quiet the year was. This was, of course, in early August. It was the quietest market range at that point, YTD, on record. Here’s the stat we ran back then:

If you zoom out a bit, the market has gone nowhere in the last two years. That’s not necessarily a positive or negative stat…it all depends on several factors. Most of which I will highlight in an upcoming boot camp.

In terms of compression, in the NYC presentation we discussed how speed plays a role in marking an environment, and in a possible topping process. I presented a few charts I want to display again, going into the 2016. Around this time of year, I’ll usually highlight a chart that is one we’ll reference many times in the coming year. A chart that will define the year, basically. Last year it was $FDN, and how that would be the chart that “defined 2015.” This was simply because its largest weightings were FANGS (Facebook, Amazon, Netflix, Google, Salesforce.com). Cap weighted growth was my favorite theme for 2015, and this ETF covered all of them. Pretty good theme for the year, no?

For 2016, there’s a significant amount of compression built up. Here’s a look at the monthly chart I used for the NYC presentation, and another chart that zooms in, and also adds a Bollinger Width indicator, to show you just how narrow this range really is.

Monthly chart 1928 – Current

Monthly chart 1995 – Current

I use the bands solely for this purpose; to identify where ranges become trends and where the starting points of the sharpest market moves start. That principle helped us dial in better than most on the market set-up from August through November.

This condition on the monthly charts is pretty rare. But know this, when the range below is broken, don’t try to fight it.

Fuck 2015.

SPX going to close the year flat for the second time in the last 5 years.

2058. L.O.L

I will be doing my 2016 predictions via video soon, along with a strategy session for rules/goals for the upcoming year.

I will provide a written recap for the iBC facedbook page.

MuddyWatersResearch @muddywatersre $WBAI – a favorite mystery of 2015. Today announced 4 directors resigned (5 weeks ago), has zero revenue, but amazingly has market cap.

The stock is only off 2.5% at the moment, but keep an eye on this ticker. These guys have been able to take down these China names fairly easy.

For a quick trade, I picked up $COP Jan calls.

As discussed in After Hours with Option Addict, I am looking for a move to $50-$51 in that time frame.

I am also long /CL here at $36.60.

More later,

OA

Here’s a 60 minute chart on $MTCH. It’s been consolidating since IPO, and is coiled to make a move soon.

This is one to put on our radar, as it should leave this range by at least this time next week.

OA