SHE WANTS HIGHS

Good week guys, I gotta head out early today. We came up with a decent list of watchlist stocks for next week, which should make for some decent pops as the market sets its sights on new all time highs again.

I picked up $UBNT calls for a squeeze play, and am starting to focus on stocks that have elevated short interest levels that have been relatively quiet here recently.

We’ll focus on these next week, but if you have any squeeze plays in mind, feel free to post them. I want a decent sized list for the upcoming month.

Have a great weekend,

OA

When looking at the context of a Fed day reaction like we saw yesterday, its always appropriate to get a little backfill. Specifically, I always take the price of the market prior to the reaction. In this case, the $SPX was 2067. So long as this area is defended and prices are able to accept values above this level, this is bullish.

Most importantly I wanted to see where the markets appetite for risk was. The Russell and Nasdaq are clearly outperforming, and this relative strength suggests better performance in riskier assets. If you look at the stocks rallying the most today, Biotech, software, alt energy, and several high beta names. I was hoping to see more action out of the stocks that lagged the market yesterday, but those I chose to follow have been mixed.

I’m obviously still bullish on stocks here. As we slip back into the grind mode, I’m looking for more dips to buy.

OA

Seems like a little market rotation here going into the Fed. I picked up some shares of $TZA for a quick hedge and sold off a few small stock positions to raise cash.

I have one chart I am focused on here and it’s $BAC, as discussed last night in After Hours with Option Addict.

More later,

OA

$SOCL has the same chart pattern that $FDN did back in late January when we started using it as a metric to measure the growth trade.

http://ibankcoin.com/option_addict/2015/01/22/the-chart-that-will-define-2015/

Take a look at $SOCL, and notice it has the same look as $FDN did back in January.

Keep an eye on this, and the volume that came in today.

Long calls of the April expiry. Twenty fifth striking price.

More later,

OA

Our market map from last week pointed to higher prices this week. Despite the fact that the Russell is lagging a bit here (+.50%), doesn’t hurt the markets upside potential this week, but rather allows the other indices to play catch-up a little bit (NASDAQ/SPX +1%).

Some of the themes we talked about last week were Semiconductors, Rails, and a few select retail plays like $M, $GPS, and $BBBY.

I picked up some $GOOGL March calls for a quick pop, and a set of $TSLA March calls as well.

What’s on your radar this week?