OPPORTUNITY IN THE SPEED

It’s been hard to get much traction in swing trading, but its been great to see you guys navigating this market so quickly.

There’s been a lot of solid group think in the chat, so thank you for your participation.

As discussed in After Hours with Option Addict last night, I like the idea of a bounce here for the remainder of the week. This may only go so far as to create lower highs in the market, and get that VIX back down to 16-17. From there, if you are a bear, you better come out fighting. If you are a bull, better pick your top prospects right here and now.

The charts I posted on yesterday’s blog seem to be good for at least a 10% market move at minimum from these prices. Within a week and a half to two weeks from now, that move will begin.

Good long tails and strength in a few growth names today. We’ll see how they perform into a little market strength this week.

OA

Small and Micro caps are very resilient into this decline today. As discussed last week, there was a lot of conviction moves in the Russell last month, and its a good sign to see these prices defended.

Here’s another look at the developing range in the VIX. This is my biggest cause for concern right now.

The biggest tell for me today is the non-response in the Russell, and the strength in growth stocks (again). They are very resilient into market weakness.

We’ll see how the day settles, but there’s that constant feel to this market that something big is setting up.

We’ll discuss this in more detail after hours.

No trades to speak of yet, other than booking $CMCM.

More later,

OA

The Russell 2000 has quickly moved back to retest the December trading range. Once this range is broken, it users in the possibility of a fast move lower.

The VIX has stayed up around 20 for quite some time. Going back to October, this is basically the midpoint of the range.

I still like the way that oil is holding $53, and that trade that we looked at earlier in the week is still possible. In other words, if oil can rally at some point next week, EXXI, BAS, and GDP ought to rally sharply.

This is a pretty pivotal location for the market, obviously. Stay nimble out there.

OA

Despite being the typical slow holiday week trade, breadth is pretty good under the surface today. Crude went out stable at the pit close, even got bid up a tiny bit.

I think tomorrow we may get a rally in oil at the open, so watch GDP, BAS, NADL, and EOX tomorrow. I like these based solely on profile/overhead structure.

I also am watching for reversals in Z, MBLY, and with any luck, BABA starts moving tomorrow.

Have a good one,

OA

I’ve been stalking this stock all year. I just picked up a good sized position for 2015. Lots of call volume activity in this today:

‏@WallStJesus · 26s26 seconds ago $BYD 16,045+ FEB15 $13 C traded, a whopping 45x normal

Here’s the chart. Looks like MGM did in 2012 before it doubled in price.

I picked up shares of FRO and EXXI at the open this morning.

GASL, VIP, SN, and NOG are on my radar as well.

Got any cheap names under $5 you like here?

OA