“DEM THREE’S THO”

In our After Hours with Option Addict sessions, I’ve been trying to explain how growth stocks are all interconnected in terms of market sentiment. We’ve categorized stocks into a 1-5 rating system and illustrated how quality stocks like INTC, MSFT, IBM have been rallying though all this market activity. We looked at momentum stocks (2’s) like BIDU, AAPL, AMZN and how well they’ve traded lately. Then we dialed into growth stocks (3’s) and looked at dozens of non correlated stocks, like DANG, FEYE, TWTR, TRLA, CSIQ….and showed how the charts are identical, despite the fact that the companies, fundamentals, and valuations are not.

I’ve been saying for weeks that this is a market set-up “specifically for the 3’s.” The same stocks Janet Yellen called into question. As of this moment, these stocks are leading the market here, leaving their multi-week ranges. Should they go, it will trigger a move from price acceptance, into price discovery mode. Since exposure to these stocks was reduced earlier this year, this could create a chase, which you are all familiar with.

On the day, I booked SCTY calls, took a position in FSLR calls for tomorrow (tarriff ruling). Still want X calls for earnings and GOGO.

OA

My positions that have been lagging are approaching session highs. The Russell is flexing a positive divergence today, and the metals are taking a bath.

You’ve been warned. We’re getting ready to go full retard here.

OA

My burrito plays are exploding. I still have quite a few stocks that have paused in this stretch, but I am playing them with August expirys to help me sleep at night.

The KING has been slapped with a downgrade, but as luck would have it, wise men have used such opportunity to hoarde shares at a ridiculous discount. I’m not a seller of this just yet.

I still think this will be the type of starting point that creates a lasting move in the market, similar to what we walked through in the month of May. Don’t sleep on the opportunity here.

In the mean time….let’s bond a little. Tell me what you think about this market. Tell me your very best idea. Ask me a question…as long as it doesn’t pertain to whether or not I still like First Solar.

OA

Top Pick today. Love the way this is trading.

The stock makes a decent swing from here if you only want stock. I picked up August 30 calls at the open.

If stock, a stop under $27 would suffice.

OA

Financial media, which has your best interests at heart, is telling you to avoid this next move. Janet Yellen, is calling into question valuations so that you can avoid being trapped in a bubble that can only burst from here. The basement of iBC headquarters is filled with cages of trapped angry investors, who would give their blank avatar to short every last share in this market, and who know without a doubt that this bull is tired, and is ready to die.

There is an important market set-up that we’ve been discussing here; one that is further playing out today. Let growth stocks be your guide.

I bought back into TNA here, as it prepares to unleash hell.

Get busy buying.

OA

Here Ye: Long calls of August, of the twenty first striking price.

Be seated.

OA