The last few weeks we have been able to ride the trend well and find good opportunities among select stocks. Next week I believe is going to be more challenging because I don’t see good risk/reward for either the upside or downside. My bias is that we have more room to the downside then the upside next week,...
The last few weeks have been great with lots of good opportunities. Unfortunately, I think next week is going to offer less opportunity and might require a bit more patience and tactical trades. The market is near a spot that doesn’t offer much reward in either direction (more about that in the set-ups/commentary post). My...
Last week we again were on the correct side of the market. A couple paper-cuts early in the week were made up for with very profitable trades at end of the week. More and more stocks are looking good, which is bullish; however, often when that happens it’s time to prepare for a mild pull-back/consolidation....
Last week the open interest did a pretty good job of helping us determine ranges as well as breakouts (such as FB, TSLA) and which ones weren’t ready (such as GOOGL). Next week also has some good ranges and open interests that I think will lead to good trades in these momentum stocks. Lots of them below look...
After over two months of rangebound choppy action we finally made all time highs on Friday. Those that have fought the recent rally can list a plethora or reasons why the recent high is bearish; however, let there be no mistake that closing at highs is bullish as it has been in every other instance since […]
Monthly expiration is upon us which means the open interest will change less throughout the week and allow us the opportunity to see potential ranges as well as trade them. It also gives us insight into how strong the below momentum stocks are based on how they respond to high call areas that typically align with...
After over two months of rangebound choppy action we finally made all time highs on Friday. This is bullish, especially since it is being met with at or near highs on the other indices. Being bullish though doesn’t necessarily mean it is going to go higher next week as a consolidation period is often followed...
As I said last week I think the open interest has been very useful recently. Sometimes (for instance during trending slower markets) open interest helps, but is more difficult to interpret and play. With the pick up in volatility I am noticing the calls and puts as being much more informative and helpful. Also, as...
We had a good week playing the volatility last week and as of now it appears we had a false breakdown (Monday morning) and are now breaking to the upside. With the recent volatility and still no sold evidence that we will in fact trend higher I will again lay out several scenarios we can...
Last week here I wrote that I wouldn’t be surprised if we went below SPY 200 and then went on to test the other side of the recent range at 204. Both did in fact take place before the market then went on to break the wedge that many market participants have had their eyes on. The […]
After last week I haven’t read much except for bearish implications. I too have already discussed that in my posts, particularly the one titled An Intermittent Bottom Perhaps, but Swing Bottom in Question, posted on January 19th. I still do not think the bottom is in; however, I also don’t think there won’t be some shake-outs […]
With all the increased volatility I’m seeing larger strikes on both sides. This is a positive for us because it helps define ranges better and based on how this week plays out (whether we start down or start up) I will use the open interest ranges to find good trades. I noticed that the last...
This market is definitely making things very challenging. In my view that is a good thing because I strive off challenges and this market is certainly providing opportunities if you can be on the right side of them. I have only a couple of set-ups only because my main focus is going to be on...
A Healthy Market Pause Looming
Last week here I wrote “I took a look at every bullish weekly MACD signal cross since March 2009. In each of the 10 instances, the market continued to make higher highs the following week 100% of the time. Furthermore, in 9 of 10 instances the market also closed higher to end the week. The one instance […]
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