Open Interest for Momentum Stocks – March OPEX

As I stated in my market commentary for this weekend, I am starting to see more short set-ups than longs. This includes some of the following momentum stocks. You will notice that many of these open interest graphs have one strike that is very prominent. Sometimes that strike can act as a magnet (read more about that here). However, and I want to emphasize this part, it doesn’t always act as a magnet, especially when the trend is in the other direction. That is important to know (even if the trend is in right direction) because I don’t want you to assume it will happen and trade based off of that. I don’t have stats as to how often it happens so it’s anecdotal.

AAPL: It was looking good at the start of last week, but ended poorly along with the rest of the market. If it can get some momentum it does have room to go higher, but it’s AAPL so….aapl.3.14

AMZN: This is the one bright spot among these stocks. It has some momentum and held up well on Friday. However, if the market follows through to the downside, AMZN will have a rough time holding up (I have been long calls from much lower and will not hesitate to stop out).amzn.3.14

BIDU: Very ugly. Perhaps the Weibo and Alibaba IPO will help bring stability to it sometime soon, but I wouldn’t count on it next week if the market continues to struggle. bidu.3.14

FB: Longer term bullish and probably one of the first buys when we a begin a new upward trend again, but currently looks like it it has more downside. FB.3.14

GOOG: Sitting almost flat on its 50-day MA and might be a good short on a bounce. goog.3.14

LNKD: Very ugly chart and getting close to taking out lows from mid February. lnkd.3.14

NFLX: Looking like it’s rolling over (I am currently holding puts). NFLX.3.14

PCLN: About 1000 1300 strike calls were sold to open on Friday for over $14. They did not appear to be tied to anything so I imagine it is someone long the stock protecting their position. pcln.3.14

TSLA: Barely holding gap from a few weeks ago, but a tricky stock to short. TSLA.3.14

TWTR: As I’m sure you are aware I am longer term bullish. Unfortunately, it looks like 50 is coming. Sorry to those who are long :-(. TWTR.3.14

Starting in April, this will be part of what my subscribers get over the weekend and won’t be posted till late Monday on the free part of my site.  Thank you for all those who have expressed interest in my up-coming service. I am working on getting the details on my website and hope to have them displayed by next weekend.