INTERESTING DIVERGENCE

How’s that Russell 2000 looking, down over 1.5% heading into the weekend? That’s got to make you second guess riding longs into the weekend, right?

Despite the horrendous action in the RUT today, it’s by far the strongest index here. Take any index and check prices against their last swing low, back on 1/16/15.

The risk indices (NASDAQ/RUSSELL) are well off said lows. Perhaps today’s Russell weakness signals some catching up to do, but the action in tech darlings make me think this is still the best table to play at.

I’ve put together a watchlist that we’ll discuss in After Hours with Option Addict tonight.

OA

I got back into town this morning and have been trying to get a few ideas flowing. We’re back at the same levels of support where we’ve bounced before, coupled with a nice reversal in the VIX.

A few charts I have dug through this morning: EXAS, ABBV, PANW, QSR, CRM and ADHD.

What are you trading here?

More later,

OA

If you break this range down in the indices to volume by price we’re basically holding point of control, which is a good reference point to use as a line in the sand.

I mentioned on my last post being a buyer of weakness, so I’ll take on some risk here with a tight leash. My favorites are FEYE, P, ROSE…maybe HABT. Thinking I might take a small call position with BABA into ER with the AAPL proceeds.

I’m waiting til we get closer to end of day to place a few orders, and will let you know what I pick up. BTW, today is my last day out of the office, so I will be back and catch up with you guys tomorrow.

OA

I was hoping last nights weakness in the futures would have carried over into the open today. Just about any stock out there would look amazing given a 2% pull back or so. I’m not sure how much downside we’ll see in the overall market, so I am trying to set alerts for lower prices on each of my favorite names, including BABA, P, TWTR, YELP, etc.

On the day, I like SKX, AMBA and PANW.

I’m on the road this week, and will return home on Thursday. Raul will be taking my place on After Hours with Option Addict. He’s going to be illustrating and simplifying the art of using market profile. Stop by and have a look.

OA

Growth is cheap, and the fear is diminishing. I’ve been warning this phase would come, and its finally here.

Seeing as how the stocks that were ignored over the last few days are swiftly catching up today tells me that our traditional methods of our stock selection process are working again. This is pretty good evidence that the appetite for risk is increasing, and that you really ought to take that into consideration when picking stocks to trade.

This is going to be an important shift, and a very powerful one.

Options are getting cheaper here too. In After Hours with Option Addict, we’ve been taking a more passive approach til conditions were to change. Things are looking much better here in terms of risk, speed, and pricing.

Let’s get back work. Rough patches like we went through over the last few months evolve into easier markets. There should be some big and easy money to make from here.

OA

Long both GRPN ($6.50) and ANGI ($5.24) this morning.

Starting to position into some growth names moving forward.

Watching P, DDD and MBLY here.

OA