This All Resolves Today

I’ve been waiting too long for this.

The weight of small caps on the market will make an important move here today. Future generations will look back on this day and applaud the Russell 2000 for finally taking a stand, and allowing the rest of the market to flourish and release it’s built up pressure.

As most volatility indicators are predicting, this should be a big move. With short interest at 2011 levels, be cautious here as things could get fast.

Me? I’ve built up several positions over the last several days, putting myself in the front row for all of this. With significant opportunity at stake here, I’m positioned to rebound from this year’s financial mayhem quickly.

Wishing you all the best out there.

Top Picks: FB, FSLR, JASO, P, BIDU, AMZN, SUNE.

After some decent moves in BIDU, FB, AMZN and MY from yesterday, I picked up these three items this morning…

SCO Jun 29 Calls, P & GS Weekly calls.

Trying to locate decent sub $10 stocks…post ’em if you got some good looking charts.

OA

I am in risk-on mode from the open, holding weekly calls in BIDU and FB. I also have a stock position in MY, watching these cheap high beta stocks hoping they can start holding gains for more than a few hours.

Next up, I’ll be buying weekly calls on AMZN later today. Just waiting for slightly lower prices. Keep an eye on the comments section for details.

OA

From our 2014 outlook, the Emerging Markets theme is still humming along. Today, India (IFN) is ripping. Check out this great piece in the Times:

http://www.nytimes.com/interactive/2014/05/15/world/asia/india-election.html?hp&_r=2

While the Indian internet stocks are forever on my radar (SIFY, REDF) charts of INFY and MMYT appear to be decent set-ups, especially taking longer term charts into consideration.

I booked gains on TTM recently, but will look for another spot to get in.

OA

New highs in the Dow and S&P have been met with disbelief and anger, as traders gathered together armed with torches and pitchforks to cast stones, spit upon, and hail worthless call option positions at their trading terminals.

The speed has picked up significantly in the Dow and S&P today, fresh off a ‘overbought’ signal on the DIA….

The Russell is now back at it’s multi-month neckline, trying hard to hold as individual stocks deteriorate. Go easy on the long side until you can identify any sort of initiative buyer. On the flip side, be even more cautious shorting the breakdown. This has been the worst trade to initiate over the last several years, with the exception of 2011.

This still remains a truly unique situation here as I’ve never really come across a scenario where two highly correlated instruments (SPY/IWM) can yield both a relatively overbought and relatively oversold signal simultaneously.

Have some insurance here, but at the very least think safety first. It’s hard to watch so many engage in battle with significant portions of capital when raising cash guarantees a place in line to play in easier conditions.

OA

The volume in the SPY has gotta compare to holiday half-day trading volumes. Apparently, not many are hankering to buy the breakout.

All I really have here in terms of commentary, is that a failed breakout would at least trigger something fast to the downside. Stocks in the last two days have still managed to show good dispersion, even within the high-beta and growth names everyone is watching.

A few more days of this type of action and we will have slowly sailed into summer grind mode. Continue to stay focused on individual stocks.