Picking Up Pennies In Front Of A Steam Roller

A saying comes to mind as I view the current market structure:

“Picking up pennies in front of a steam roller.”

We are at all-time highs, yet it feels like mini panics on every dip. Constant trade rumors to sort through and the “algos”, the machine traders, can’t handle it.

My activity has been very light this week and will continue to be as I’m heading out of town tomorrow. This is no market to be a hero, but there are great opportunities to trade it every day, and I’m sad I will be missing a potential pivotal day.

If the market shakes off weakness here, I think the opportunity lies in $FB call options as it breaks $200. If the reverse is true, and we start to break Wednesday’s low, there’s always a trade in volatility, ie. VIX, UVXY, or TVIX. Volatility will likely be the next big trade, but something tell me it may be $FB to $230 first.

$FB is still my trade of the week, especially with today’s dip. You should continue to monitor the action here.

See you guys on Friday….