Watching OA pull the proverbial rabbit, a set of short dated call contracts exploding in value, is always exciting. Congrats again. If you’ve never seen this guy at work, I urge you to come inside the Pelican room and do so.

It’s important you develop your own ideas though. Even if you’re trading alongside your mate, you should have a plan. The more reason behind it, the better, because your wit and willpower will be tested, promise.

I had the RCS short signal coming into the week. I took Zillow weekly puts. When the broad market move I was seeking materialized my Zillow stayed put, making the puts seem silly. I offered to sell them all day yesterday. No takers.

Fortunately they looked worse today, as did the market, and I managed to sneak out with a win. Awesome. I also took a wonderful entry into /NQ_F using the morning levels and a bit of breadth mojo. All actions are very precise, which is how I like to trade the futures.

Bulls could not quite seal the deal today. They needed to sustain above 4490, IMO, to regain the edge. I’m still cautious.

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Order flow was heavy today, let’s start with that. Not overnight, but from the opening bell there was a flurry of action taking place. This week is huge, the rotations are huge, and the crescendo is scheduled for tomorrow.

The weekly strategy signaled a short and I was skeptical of it, coming only two weeks after the prior signal. It merited respect, nonetheless, and to a certain extent, thus I envisioned how it might play out:

Checking back to the #NQ_F Thurs/Fri gap early next week is my dream trade.

— Raul (@IndexModel) April 25, 2015

The essence of the idea is to see the weakness play out early in the week, adhering to the signal, but ultimately being a trap, due to the overwhelming health of the market.

What do I mean when I say health? Industries are taking turns with strength. On a higher level, sectors too. Healthcare may start seeing money rotate out (it might not) but the funds are going elsewhere—last week to Technology in a big way, this week Materials.

But ultimately we need to see how Financials perform after tomorrow’s FOMC Rate Decision. The S&P and Dow showed divergent strength. If they intend to demonstrate leadership, they best do so with unabashed confidence and supremacy.

Either way, I will be prepared to trade these powerful markets to finance my Twitter investment.

Finally, Exodus is live. The gods are dancing naked on the beach, pleased by man’s accomplishments. Congratulations to The Fly, the team of engineers, and the supercomputers (always show gratitude to the robot overlords).   This is a huge asset—an integral weapon designed to devastate financial markets with unparalleled offense and utility. Don’t hesitate to ask me how to works.

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The culmination of two powerful schools of thought is leading to a most profound realization—there is an edge here in these conditions.

Over the weekend, the RCS signal triggered again. This signal tends to preclude lower prices. Not always, but often.

The sooner we tend to the preclusion, the better, IMO. Over the weekend I made another call, the check back to the Thursday/Friday gap was my dream trade of the week.

Well there it and was, and there it went.

If today’s low holds we’re headed to blue skies. If not, gird your loins for a real liquidation. It’s that simple. Now I’m off to see about a hoagie.

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Today bulls were invited to enter the parlor doors. They were greeted with flowered neck dresses and the smell of barbecued pork. Accompanying the aromatic bouquet was friendly music and dancing women.

It was a wonderful setting and in the bulls came, and took their seats, ready to feast. It was a trap though mates, they looked down at their plates and no sooner they turned to bees, millions of bees!

The bears had set a trap, and a good one at that.

But these in-fights have no meaning. This week’s battle will be settled by Apple, The Fed, and Elon Musk. So bee [sic] patient.

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Every week is important, sure, just like every day. But the way everything is set up heading into month-end, we need to see bulls pull the proverbial rabbit out the hat.

There comes a time when technical analysis tells a vivid story but the underlying fundamentals may be whispering subtle truths. This is one of those occasions, and it has me feeling cautious heading into the week.

This week will likely be decided by the king of corporations, Apple, and the puppet masters at The Fed.

Elon Musk has decided to make a splash this week too, come Thursday.

I sense we’ll remember this week for the rest of the year.

Weekly Strategy Session subs, this week’s report should be hitting your inboxes shortly. Let’s be ready for anything.

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Some of you might think this entire live exhibition is a charade—a flippant trek across the marketscape certain to end in destruction and homelessness. Devious troglodytes, freighted and confused by our world, hunch their heads and stare at these words from just below their eyebrows. And while they ferment with anger, their emotions only poison themselves, and in their destitute caves they remain.

We were given logic, gentlemen, and to embrace it is to be virtuous and universally aligned. You come here, we all come here, with the explicit intent of banking coin. Nobody cares how you’re so god damned driven, you are. And nobody cares how you go about banking said coin—only that your explicit intent is to do so.

There are tools. They were created to make us better, not to rabble on academically. There are brilliant minds, all coagulated by the forces of logos and steel.

All these qualities and MOAR are why iBankCoin will retain internet supremacy for no less than 10,000 years, a foundation stone carried across the galaxy to build new worlds.

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To be short is to be brave, but will the market attest to your bravery? No, for the market hast no concern for the virtues of man. It is merely a mechanism for organizing people to exchange goods.

People want stocks. They want banks, websites, clothiers, scientists, and much more. They want investments again. Not for today, but tomorrow when their hands can no longer work.

The market is doing its best to fulfill these wants needs. It’s a need because it’s an adult responsibility.

Before today happened I was expecting sellers to show up and round robin us back through the wretched chop. Perhaps everything being shown to you and me right now is a lie—a convincing lullaby to heavy our eyelids. It was always a popular play, but here we are.

Here we are at contract highs on the Nasdaq, and bulls came with heavy artillery. At one point around 1052 to 1231 (depending on your source) NYSE stocks simultaneously ticked higher since March 18^th. If you recall, March 18^th was a Fed day. Today was different, no news, just an exuberant release from compression, a consumption jubilee.

Now gather a bowl of kale chips (or genetically modified popped corn) for our leaders are set to speak. Bezos, Schmidt, and Nadella. Our life is in their hands, dude.

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Keep in mind, you will be told, leading into, during, and after May that you’re supposed to sell in May. You will be presented with charts and infographs and sharp-dressed pundits directing your attention to this devious month.

Here we are lads, back on the top-end of our range. To think we will break out of it would be to ignore our near term past. Who can convince me this time plays out differently than the last two rounds?

Bull or bear, given the amount of land we’ve covered since Monday, it feels like this week had two Tuesdays and an extended Wednesday. I suppose the trajectory of our current gains says something. Despite being long several stocks, the market still needs to convince me it’s fixing to go higher. It would be fair to call me a skeptic.

We are seeing these super active globex sessions which is a staple of lower prices, but the sellers vanish during US RTH. Again, odd stuff.

I suppose individual stocks can continue to work in this tape. Momentum tends to run the best near peak and trough, upward and downward respectively.

The cross currents continue. Per the Weekly Strategy Session, the leading Russell was reason to stay confidently long, and the flagging Nasdaq transports a reason to be cautious. Well, the transports jammed higher Monday-Tuesday and the Russell has been lagging all week, so SMH.

What I am saying is let the winners run while hopefully booking some gains into this strength, because something tells me sellers might show up to paddle come tomorrow, given our location on their side of the ping-pong table.

 

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Now that I’ve locked in partial gains and abolished trade risk, I would like to discuss how Exodus is changing the way I trade options. You may be asking yourself, why not be more transparent and declare your positions to the world upon origination? It’s simple, when you pirate across the seas waving the Jolly Roger you make enemies—mostly predatory robots.

Now listen closely lads I’m going to teach you how to fish with the latest tactical gear.

Yesterday GILD flagged oversold on the 12 month algo. Said signal came with historical precedence, a 10 and 2 record of winship, indeud. It also came with expectations, look to see a move around 3.6% or so, great.

Thanks to this information, picking a strike was simple. If yesterday’s price was about $100 and we’re expecting about a 4% move, the 104^th strike was about right. And since the signal cycle is 10 days, 2 week’s worth of time is sufficient.

Enter today, one day into the cycle and we can see Exodus has won again, flexing its sublime ability to time near term lows, and each contract purchased has already paid about the semi-annual price of admission to Exodus.  Each contract–how many you bought is a factor of your risk tolerance.

This is just one of the tools that has me in love with Exodus. It is changing the way I trade big time. I am so confident in the value Exodus offers that I am helping out with sales.

If you haven’t already made your interest known by emailing The Fly, shoot an email to me at [email protected] so you can be hooked up with a free trial. BONUS – If you email me by market close I will share with you today’s pick, served on a complex web of mathematical harmony.

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In my latest quest to stack paper I am doing the dastard deed of buying into the pump. The idea, in essence, is that your absolute best performing stocks are undergoing some draconian pump campaign wherein the first is paid fat, the middle can extort some juice, and the last is stuck holding the bag.

Being first requires monk-like patience to sit through several consolidations and hope the gods bless you with a mind-bending surge of order flow. Being in the middle requires little—a quality bit of software perhaps. To be last you must cast objectivity aside and fully embrace hubris which will have you imagining all the moneys you’d make if your perverted fantasies play out. LOL

As long as the Russell does the money dance (holds onto its breakout), I am of the school of thought this uncomfortable means of earning a buck will flourish.

In other news, the Nasdaq did in fact close the gap bears cracked open Friday morning. That gap has been filled with all the trimmings of a Thanksgiving dinner.

If bulls can sustain 4396.50 it’s going to be a long-A week for shorts.

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