LOWER IS EASIER

The pain trade is usually getting pinched on buying the dip too early, or chasing the market up too much.

We’ve got relatively decent structure from Monday’s lows and Tuesday’s range. As folks change their mind of being long here, I want to buy some stuff they’re selling. Easier to buy red and sell green during this process.

If you hadn’t noticed, the $VIX traded into the 15’s today. That is a fantastic sign for the environment moving forward.

OA

I picked up shares of $WING this morning, extra lemon pepper, just under $29.

UPDATE: And another block just under $28.

OA

Going back over the last few years, most of the tradeable lows in the market have taken about three days to set-up. After a washout move, there is normally a weak bounce to follow, then the test or breach of the washout low.

My preferred scenario here is that we’re red tomorrow, with all the indicies testing or breaching lows with the exception of the Russell.

I think that move might last 2-3 days…but from there it is imperative to see where the $VIX and ATR’s are at. If they remain elevated, it would be wise to balance things out with a couple of strategic shorts.

For the day, I am only watching. Tomorrow, I like $SPLK, $PANW, $GPRO and either an $AMZN or $GOOGL depending on where they land.

OA

Ugh.

Well, I have managed to absorb a greek uppercut these last few days, and have been trying all morning to determine if this is the beginning of something or the end of something. I’ve been able to endure market weakness all year, but this move was much different from all the others, obviously.

A $VIX above 17 means strategy has to change. Since we’re that close…I have not done anything today other than play a few scalps in the $NQ_F/$TF_F.

The $NYMO has traded in a relative range this year, getting as low as -65. We’re -50 right now.

I’m considering getting back into $SPLK if the tape firms up. Otherwise, I am in no rush to do anything here.

OA

Man, these summer Friday’s are getting old at this point. This has been the biggest risk off day that I recall seeing all year. So many familiar names in the -3% OR MORE club, and I end off the week getting smashed.

It’s been a great year this year, but this week sucked bad. I’ve been forced to scale back on a few things, but I don’t like ending the week on a note where the stocks that have outperformed on the year have been liquidated as much as we’ve seen thus far.

The crazy thing here is that the market isn’t fast. That detail is pretty important to consider, because all it does is indicate that money doesn’t leave the market, it just rotates. Notice how the stocks in the +2% or more club are of the quality variety today.

I’m going to sit here and pout for the rest of the day. Trading sucks.

OA

As mentioned in my last blog, you have got to be pretty pumped over a free Exodus trial. Shoot, I know I am. But even better, you guys are getting an interactive look at it this Friday in After Hours with Option Addict. I am pretty sure I am going to open this up to anyone that wants a free peep show, but not 100% sure yet.

Also, NYC is right around the corner. We speak of this often, but stop procrastinating. For those that thought the VIP party last year was just wall-to-wall wang, we’ve taken steps to insure there will be more diversification between genders.

Ok enough of that. Before I forget…funny story, but check this out:

Notice the date.

Better yet, notice the time.

Now look at the NASDAQ.

If you haven’t heard my brother-in-law stories, you have totally missed out. This guy is uncanny, and he’s the best indicator I have. 100% accurate, much better than your hindenturd omen’s.

You’ve been warned.

OA