SURE, SELL YOUR STOCKS HERE… BUT DRINK THIS FIRST

Another Friday Fisting in stocks…depending on which ones you own.

The divergence in performance among growth and high beta this week is very compelling. Not to mention that the market has done well absorbing a 50% haircut in oil. Should oil get bought for any reason, I’d look out above.

While the market speaks in range today, notice what’s trending. Not many expected this coming into the week, and its a behavioral change that needs to be noticed.

With the year winding down, everyone is hugging that benchmark. If things get perky, that needle will be chased.

Monday is December 15th, FWIW.

OA

In reference to our discussions on market/small cap seasonality in After Hours with Option Addict, here’s a cool chart to reference.

Hat tip @Mrk.

Ho, Ho, Ho…

OA

For you chart experts out there, I’ve had success with certain patterns on weekly charts over the years. These patterns have market epic lows on massive reversals that have played out over monthly time frames. These patterns gave us great trade locations in AA, BIDU, LULU, FSLR, KORS, X, etc.

These same patterns have been displayed in the momo-crowd now for multiple weeks. This is why I like them here…to name a few.

To say I have no good reason for liking a particular trade is stupid. Of course I have reasons for liking a trade. None of these patterns have confirmed, but they’re near the apex of these ranges. As for the advice to short these stocks into the hole, most of these stocks are where they were at the time of my comment about avoiding the short. With the NQ and TF not taking out lows yesterday whilst old man stocks got drilled, there’s a compelling divergence setting up here.

Anyway, I needed something to write to detonate that last blog post of mine. If I missed a question, re-post. I can’t wade through the onslaught of shit to find the normal daily value.

What do you like here?

OA

One of the big reasons I came out of retirement last year to start blogging again, was that I have a way of creating community. I like using that to exchange ideas, see what others are doing, and use that as ammo to attack the market. Lately, the ideas are getting sparse and the comments section is becoming a circus shit-show.

This has been a recurring theme. When the overall level of market difficulty is on the rise, the gloves come off. We’re all frustrated, its been nothing short of an awful year for everyone.

Everyday it seems like we’re at a critical juncture, which is exhausting my will to live. Instead of using this platform to talk shit to one another, I’d rather exchange ideas here. If you have ideas, post them. Let’s get back to some degree of normalcy here.

OA

This was the only reason I scoffed at shorting into the hole yesterday. It may last for a day or two, but the snapback moves are too vicious.

Based on my long dated history with $TWTR, I’m happy it chose to wait until my birthday to bottom. I’m sure we’ll reflect back on this day as a pivotal one, in terms of my long term stance on the market.

Speaking of which, my 1998 thesis is looking great, which means 1999 is around the corner. Get your party hats ready.

OA

Very interesting action on the open here. Crude is stable and the energy patch is stabilizing, and despite the market weakness social media stocks are paring back losses and getting green. Lots of bullish option flow behind those stocks this morning as well. Funny to see these stocks wait for a big market drop to halt their declines.

1170 in the Russell was the floor last week, and at this point we’ll use it as a ceiling. If prices don’t get north of that level, that may be an actionable spot to short.

More later,

OA