AHWOA Agenda: Market Risk Appetite

Have you noticed today how some of the best performing stocks are those with high short interest?

SCTY, NFLX, SODA, SHLD, QIHU, FSLR, TSLA, ANGI, HLF, BYD, LCC, X, CIEN….

Our After Hours with Option Addict analysis will discuss how to set up scans for explosive short interest candidates.

See you after the bell!

OA

I’ve been accumulating shares of FSLR recently, much to the chagrin of many of my readers. I want to quickly clarify, now that the trade is working, why I have been doing this.

I liken the position of this stock to be strikingly similar to BIDU when I first started blogging with iBC.

http://ibankcoin.com/option_addict/2013/05/15/quick-chart-analysis-on-bidu/

My call to you, the reader, was that BIDU (back in June) was my top pick for the second half of the year. Now that it has moved 55% since that post, I want you to turn to take a look at FSLR, and the technical structure of this stock. I went after BIDU because I was absolutely positive that the stock was in its “aversion” cycle relative to sentiment. I believe FSLR is in the same cycle.

See if you can identify the similarities in these charts. I used a weekly chart on FSLR to smooth it out a little.

Per our discussions about the builders last week, I have dipped my toe into some Oct 18 BZH calls.

The early weakness in builders was bought. This is a good signal.

Favorite plays: BZH, KBH, HOV

Will update on my book this afternoon.

OA

As we discuss stocks that consolidate, when taking a position, ask yourself these three questions to properly manage the trade.

• 1. Where am I wrong in this trade? – Define the price that objectively says you are on the wrong side of the trade.
• 2. Where am I right in this trade? – Define what price needs to be hit in order to suggest that the stock is in play.
• 3. Where is the stock headed? – Define your target price, so that if the stock is in limbo, you can take a seat, eat a sandwich, and patiently let the trade pan out.

Here’s a chart of BYD. The name of the company is irrelevant, we are just using price as an example. See if you can answer these three questions and we’ll open up for discussion.

OA

I bought shares of LDK at $1.59, and also got back into Set 18 calls on UNXL for .80.

I will also be looking to book a couple positions later today.

OA

For today’s session DO NOT LOGIN TO GOTOWEBINAR

We are going to try a true live streaming broadcast. Simply login to http://ibankcoin.com/afterhours/

You will see the embedded media player on this page. Click the play button and we’ll give this new platform a try.

Thanks

OA