WHERE IS THE PAIN?

What’s the pain trade from here?

Last night, I said a gap down would be the biggest pain trade, but what about now? Did enough people load up at the open for the market to try and punish them?

Did most people sit this out? If so, the late day rally might be the way to play today.

What does the market need to do here to screw everyone?

Last night on After Hours with Option Addict, we talked about a likely gap down in stocks today. The sentiment I was picking up yesterday gave me a bad feeling heading into today, coupled with the fact that all divergences yesterday were bearish.

Today, we’re getting puke action in a few indicators we’ve been discussing, including $EEM, $FXI, $HYG. Crude is flat, but in no mans land, and the $NYMO is in -70 area…which is pretty close to buy territory.

My top theme last night was biotech, and stated you could buy the index here, looking for a group rotation, or breakout in $IBB. Fantastic leadership here today.

I’m considering re-loading into $AAPL, also like $CYBR, and $RUBI.

More later,

OA

This Russell is trading like shit today. Heavy, out performing to the downside, serious weakness.

We have spoken often about the conviction zone here at 1160. So many trend days occurred up into, within, and away from this area over the last two years. It’s been one of the craziest things to watch.

A breach of this should be watched carefully. Any bullish divergences here this week out to be bought for year end.

I’m trying to get a feel for the day here, and we’re at an inflection point on the day.

Prices have seemed to level off a bit, but we’ve already triggered a sell extreme. This technically qualifies for a trend day down here, unless a buyer engages. I’ve seen no such buyer yet.

Oil is cascading lower, and the action in $HYG is a concern.

I picked up $SFUN calls this morning, and have my eye on $BITA, $WING, $LOCO, and $SCMP.

This is a critical hour here for the market to catch some footing. I’ll be back with some additional ideas shortly.

OA

Still hammering out the butterfly pattern.

The stock hammered out a low, closing back above the crayola trendline we made earlier in the week.

Carry on.

OA

Check the Charts, they’re coiled up for a move:

$CCK

$BLL

Here’s a longer term view of $CCK

Yes. I’ve hit a new low.

OA