TIME TO RELAX

This week was exactly what I needed. I’m hoping that through all the analysis and planning via After Hours with Option Addict that you guys all made out with some decent profits on the week.

Our watchlist was narrow and focused this week, but also produced some monster moves in stocks like $YY, $NFLX, $LNKD, $PCLN, $WB and a few others.

I don’t want to get too far ahead of myself here, but when chaos and panic subsides, the market finds rhythm. I think we did a good job of tapping into that over the last few weeks.

We’ll focus on next weeks watchlist in After Hours with Option Addict. See you there.

OA

I don’t have much to say on this price action. The $ES_F needs to take out 2080 for things to continue up. But since this is a known level, shit, why not yo-yo here for a few days to encourage traders to gouge their eyes out watching and waiting through the process?

I like $CRM and $CSIQ here. Got anything you’re trading here today?

OA

Inside After Hours with Option Addict we’ve been steadily accumulating China names for the last couple weeks. That theme is ringing the register today.

I’ll start to book a few of these gains in JMEI, WB, DANG, and YY today.

Aside from that I took $VIMC shares and $GPRO calls this morning. Nothing else planned until we near the close.

OA

After watching various China internet names break from similar price trends, I bought shares of $DANG this morning and some April $YY calls.

More later,

OA

During the process of the great crude crash of 2014, we went back to two other years in which oil prices had dropped by a similar percentages. Here are the three time periods observed.

2014: -60%

2008 – 09: -69%

1997 – 98: -60%

After all three price declines, the bottoming process took exactly 4 months to complete before prices reversed.

1997-1998 Decline: Prices bottomed 11/98-3/99

 2008 Decline: Prices bottomed 12/2008-3/09

Current consolidation: 1/15-4/15

After all three price declines, the bottoming process took exactly 4 months to complete before prices reversed. We’re in that time frame now, and since last week, the rallies have been occurring above key reference levels (HVN’s).

The energy sector is looking good too. This may lend a hand to the tape where other areas of deterioration have been noted (semiconductors, transports, biotech).

I wanted to print this for you to analyze prior to our After Hours discussion later today.

OA

Actually, I didn’t do anything here today. I picked up some shares of $JMEI and took a 5% stake in $VXX to get me into next week.

We’ve been discussing some little signs of market deterioration in the last two weeks and with the $NYMO at zero-ish, the next 50 $SPX points could easily be higher or lower from here. In other words, upside risk and downside risk is balanced.

There are 10 stocks I absolutely love here though. $AAPL, $PCLN, $NFLX, $FB, $CRM, $SPLK, $MA, $MS, $ATHM, and $TSLA lower.

If we resume trend come Monday, those are my favorites to dabble in next week.

Enjoy the holiday.

OA