OA Buy: ATHM

I bought October calls in ATHM this morning.

Carry on,

OA

This weeks roadmap started with a gap down. No problem, that I can handle. We talked about our short-term target to the upside in the $RUT (1130) which is still valid based on a responsive buyer at the open. I bet we’ll get this started in the form of a gap and go tomorrow.

At that point, we’ll wait for a dip to buy. Likely down at 1120.

Structurally, the Russell has had a positive divergence quality since Thursday. This includes today, which we’ll illustrate after the bell. Breadth has been great today also.

To really solidify this whole bottoming process, I’d like to see a day where high beta/momentum/growth stocks all lead the market. In other words, on a day where the market itself is neutral, we need a day where these stocks are all positive. A day where they all trade +2% or better. This will be the final signal of a rotation we need in order to accelerate up.

What’s your top pick today? I caught a mean reversal in MBLY today. Stalking ATHM, BITA and ARWR.

OA

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Have a good weekend,

OA

I’m sure you notice that my blogging activity elevates as the crowd anxiety creeps in. I do this to help be a voice of reason, and to help you sift through all the meaningless bullshit you read so that you can make sound financial decisions.

We’ve successfully completed the process that I eluded to last night. Divergences, oversold signals, and initiative buying.

Again, bring your best ideas to After Hours with Option Addict for the final day of our free trial and I’ll do my best to provide purpose to your thought processes and trading.

OA

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Last night we focused on a few things that help identify market bottoming processes. One thing that we focused on from yesterday was that the sell-off at the open was followed by multiple new lows throughout the day in all indices except the Russell. These subtle divergences are important at lows, especially by an instrument that has overall lagged the market, and fallen the hardest recently as the market weakened.

Today, this intraday action should be monitored the same way. While the NASDAQ, SPX, and DOW are heading towards lows, trading under VWAP, etc…notice the Russell is doing something different.

After the bell we’ll be creating next weeks watchlist based on our technical biases discussed last night. Make sure to bring a few ideas to contribute.

OA

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For tomorrow’s conclusion to our free trial, I will be creating our weekly watchlist with the group. Please bring your favorite ticker symbols for evaluation.

OA