My book has swollen into something of an autonomous beast.

Price action is coiled up upon the daily VPOC as we enter the final few minutes of trade.  Buyers again presented themselves to a dip opportunity, snatching shares of their favorite stocks and dipping rather carelessly.

I have accumulated a book of options over the last 5 or 6 trading days.  Aka, I am building a book of long exposure on top of a mountain of uncertainty.  I know it sounds bananas, but every red cent I have invested into option premium could evaporate and I would still be where I started the year.  Aka, I am working with the houses money (famous last words).  Here is my option exposure, all calls:

ANGI Feb $17.50

Z Feb $95

FSLR Feb $60

ACAD Feb $26

AMZN Jan Weekly $410

TRLA $40

GRPN Feb $12

LULU Feb $52.50

FB Feb $57.50

That, my friends, is some straight crack rock.  No chaser.

I also have some low priced crank:

LEDS, RVLT, MCP, YGE, LITB, and now PHOT

Finally, there are my common stock positions:

TSLA, Z, SINA, CREE, TWTR, FSLR, GOGO, LO, LITB, and BALT

I may seem overexposed here but I still have 25% cash.  I feel like all hell could break loose and I could trade my way out of it with all this cashish.  The kicker of it is, I do not need to put huge option positions on to achieve the returns I desire.  Instead I just wager a modest 1% of my book, sometimes less.

This is an experiment of sorts, happening live for the fine readers of iBankCoin.

Elroi is hard at work too, working off his rough start.  Check out the latest stats, he crushed the holiday trade and today’s action:

I golf clap Elroi, may he continue to dig out from his early hole.  That’s all I have for you at the moment.  I am cutting out early.  Hopefully you guys do not break anything. I will be listening to the CREE call from my motorola car phone.

Be well

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I bought the AMZN 410 weekly calls.

 

Don’t be like me unless you can stomach a fist down your throat, and perhaps loose [sic] money

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The futures market is back open and ripping.  Your history books told you the day after MLK is caustic for traders, yet prices press higher.

I about fell out of my chair when I came back to my charts this morning and feasted my eyes upon the 30 minute profiles.  Where was I in the last hour of trade Friday?  I was pulling auditors out of my rectal cavity.  The neutral print occurred—my favorite intraday market profile print.  Had I been around, without question I would have been using the afternoon weakness to get long my favorite stock pick into earnings: Amazon.

This is my tip top pick into month end, and I am hoping the degenerate gambling class doesn’t send share prices spiraling higher before I can work a nice piece in place.  Amazon grabbed the golden ring with this Prime business.  There was so much two day shipping being added to orders USPS, UPS, and FedEx were overwhelmed and Christmas was ruined for many a child. ..single tear.  Best Buy is again being crushed under their own weight as they die a slow, gluttonous death.

The catalysts are in place for Amazon to rip nips over the next ten days.  Considering the public’s proclivity to go gentle on Amazon when they whiff earnings, the bold trader may consider carrying a piece of risk into the release.  However, statistics over the last 18 earnings announcements show holding long through earnings carries a 44% win rate.  The key, in my opinion, is booking some victory leading up to the news drop and defining your risk with a long call position.

But I get the feeling they crushed this holiday season.

Top pick this week and may the stock gods grant us unchanged pricing in the morning: AMZN.

 

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A good week was had by most, we traded, we faded, and things got a bit obfuscated when too many signals started crossing.  Elroi took a winning trade this morning at 4 am while I still fake sleeping.  I would pull a screenshot but I have been saddled with a criminal amount of work into Friday afternoon.

While many of you signoff and return to your beer bottle, I have entered perhaps the third inning of what promises to be a long and eventful weekend of labor.  Such is the ramification of spending the trading hours glued to your terminal, talking smack on the interwebs.  Pair that with a surprise audit and your weekend plans all take a rain check.

However, this is the arctic north, and the weather does nothing to inspire one, thus why not work my fingers to the bones while dreaming of tropic wonders?  I will make my escape from this wretched climate soon enough.

I made some pesos this week.  I gave a small bit back today but considering the type of crack rock I hold in my ranks, I chalk today up as a big victory.

The market sold off into the bell, I think, I stopped paying attention to be perfectly honest.  My charts looked safe enough to file away and get back to real work.

Top picks into next week: FB, ACAD (new long, Feb 26 calls), and YELP (I need to buy this still)

My Lulu stretchy pants are sagging at the inseam after excessive squat jumps.  This may have been an overzealous knife catch attempt.

I have to get back to work.  I will get back to you internet people later. Be well.

FINAL NOTE: I heeded our Chief Market Strategist’s caution and raised some cash.  I am 33 percent cash.

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I have had more time to observe and participate in the market this week and as a result I have taken more positions and been more active socially.  It has been good fun.  Thank you all for your interaction.  It is making me better, faster, and stronger as a trader.

Elroi, my newly retooled algorithm is doing what robots often do when you first turn them on, failing misrebly.  It just so happens I activated the robot into a tape he struggles in.  He does not like choppy markets, and this can be seen in the 2 day drawdown that occurred.  Behold:

This is when most people switch their algorithm off because it is broken.  However, this drawdown is still very normal when compared to past statistics.  I will keep him running live.  He is only being fed one contract at a time anyhow.  Once I see him performing well for a month or so, I will get him up to size.

Very early on, I was surprised to see Facebook in the red.  My homework steered me to the name last night, and I wanted it very early.  As I mentioned earlier, I bought Jan and Feb calls.

The rest of the day I was selling.  I sold down my exposure to CREE and LITB and closed CLNT entirely.  After these moves my cash is nearly 30 percent.

Remember when I regretted closing C ahead of earnings?  I told you I was a genius!

I am up almost 8 percent YTD with 30 percent cash and plenty of risk in place.  Yes, I am all grins.  Let’s see who we can fleece tomorrow.  Be well.

http://youtu.be/ynfk7izWNE8

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In Jan $57.50 FB Calls

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Stocks went bananas today, and our latest big shot short seller has been made to either run for his life or dig his heels in.  Nothing says welcome to the New Year like having your lolli snatched from your pudgy hand, yes my friend?  I profiled a massive seller Monday morning.  The market sat, literally for hours, while the bid in NASDAQ futures was PUMMELED with aggressive sell orders.  The market gave way and promptly sliced to the bottom of intermediate term balance.  I screwed up a bit, selling calls in TSLA that would have launched me into the stratosphere.  Instead, I only rode 90% of my book long for a much more modest ascent.

I sold some positions down today.  I scaled exposure down in CREE, TSLA, and YGE.  I closed C outright ahead of earnings which I later regretted but perhaps tomorrow will exude as genius timing, right?  Honestly, I think they rip post earnings and I wish I had a runner still.  I sold OWW finally too.  This was a December seasonality statistic trade that morphed into a swing trade before finally morphing into a waste of time.  I scratched it as I have no patience for stocks exuding insolence to a broad market on the move.  That is, unless they are sitting out a broad correction.

Today the strength in LITB caused it to swell to my largest portfolio holding.  LITB has taken the proper gaunt stance to propel itself deep into the anus of short sellers.  Something like this:

Later in the day, I scaled 1/3 of my MLNX long and parlayed it into MCP.  These are trades RaginCajun and I are navigating with our distinct SHANK and BANK strategy.  Here we are celebrating:

Lastly, I opened up some February $60 calls in FSLR.  TAN worries me, the solar ETF, but aside from that little detail, I love this FSLR chart.  Plus, if I win I get to talk smack about the old men at Goldman Satchel purse.  Making money comes first, but roasting Old Wall comes in at a close second.  I know, armature.  I don’t care.   Most of you guys are way too serious.

I have 6% cash, the market is fueled by degenerate stocks, and I am up 6% YTD.  I should just close my book and call it a year, but instead I will press on, hopefully amusing my readers in the process.

I have a bunch of selfies of myself doing birkram yoga in LULUs that I will slowly release as my LULU trade starts to work.

TOPS INTO THE WEEKEND: LITB, MLNX, and Z

BOTTOMS INTO THE WEEKEND: LULU, RVLT, and ANGI

Want list: FB, AMBA, and GS

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My book was absolutely pummeled today, and I have done nothing to curb the bleeding.  As we ring the bell on a bloody Monday session I am down a jaw dropping 5 percent, effectively returning me to 2013.  I suppose I should be grateful for my superfluous year-starting earnings, for they have kept me from going red on the year.

Leading the push lower is CREE.  My position was demolished by an analyst who got “worried” about where CREE was trading.  This coward and his worrying have cost me a year’s worth of counseling.

We are holding my bottom most line of support for the intermediate term balance case.  However I am not a buyer today.  This is a long liquidation trend day meaning I should be able to purchase at the same or lower prices tomorrow morning.  Therefore I wait.

Before I knew it was a long liquidation trend day I bought February calls in LULU.  My weekend research had me wanting to buy the stock and I work to it down 15 percent and I simply could not resist the new bargain.

Everything else is in place, should we see aggressive selling again tomorrow, well into the afternoon, I may capitulate.  Otherwise, I am carefully hunting additional long exposure into this weakness.

I am off to lift heavy iron like a rhinoceros.

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I bought much more RVLT today, making it my second largest position behind CREE.  Let the LED Empire commence its march to glory.

 

IF you buy RVLT because of this post you may lose your pesos like Raul

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I took some heat today, naturally.  If you think you can play this game and never experience the warm embrace of heat then I suggest you get an undergraduate degree in accounting and join the blue collar ranks.  You will be cozy, earn a modest salary, fund your 401-k, easily qualify for a mortgage, marry and reproduce, and then find joy in modest your modest home furnishings.

And that’s okay.

But getting more requires getting more.  This is like a V.King wisdom.  In order to be big you have to be big, you see?

I realize I am fortunate, being on the receiving end of the market only today where others have been beaten around all week.  I see big hands in the marketplace, sashaying their orderflow onto the tape, getting my algorithms twisted up.  And I recommend sticking with one side to avoid the chop.   Right now I am on team long.

Thus I had to sit through most of the day.  I closed out my final YELP piece, that was a huge win.  It’s less fun to crush a YELP trade when The Fly is not involved, though.  But that’s just me trying to get too social instead of focusing on the most pressing matter, banking coin.  Huge win.

I started a new long in VJET before I realized it was trend day down environment.  Then I became risk averse.  Then I realized I was risk averse, in a risk averse moment, and decided to buy the weakness in X.

I have some cash, I have some January expiration call options, and I have a butt-load of longs.  I erased yesterday’s gains but I am still well up on the week.  Let’s see how they close them out tomorrow.  Apparently the NFP report tomorrow is the biggest one this year…go figure.

I still like my Chinese lotto plays LITB and CLNT.

I still like my light emitting diodes LEDS CREE and RVLT

I still like my inverse HnS on SFM.

Elroi needs some gear grease.  He’s unfamiliar with the higher octane petroleum I now feed him.

Always more work to do.

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