Current Long Positions: Netflix (NFLX) Nov 160 Calls
Current Short Positions: None
BIAS: 4% Long
Economic Reports Due Out (Times are EST): Chicago Fed National Activity Index, New Home Sales (10am)
My Observations and What to Expect:
- Futures are up more than 1% heading into the open.
- Asia saw losses of over -2% during their trading session. Europe has changed course and seeing gains range from 1% up to 3.3%
- Some very bizarre overnight trading that saw us on the S&P futures -8, +15, -15 and +21. With Gold down over $100, and silver down over 10% at one point.
- Based on the aforementioned volatility, I would expect the same to occur in trading today - for it to be a very volatile day - protect those gains that you have.
- A major move from the market today would put us in a position to challenge the resistance and underside of the bear-flag breakdown level. This would occur at 1166 - about 30 points higher than current price.
- The bulls have yet to successfully trade AND close below 1120 on the S&P. There is continued buying support at these levels. Should this level eventually break watch 1114, and then 1101 for additional support.
- Volume has picked up over the last three trading sessions.
- We are on pace for five straight down months in the market - the likes of which we haven't seen happen since 11/07-3/08
- This week marks the last trading week for the quarter, and should expect some interesting price moves as we head towards Friday.
- The panic in selling that we saw back in early August is clearly back, ripping off large chunks of share value across the board.
- S&P confirmed the head and shoulders pattern from the past month.
- My Conclusion: I'm not trusting the market strength this morning - overnight trading showed us that this market is trading on pins and needles, and that strength should be opportunities to book gains.
Here Are The Actions I'm Taking:
- Traded in ProShares UltraPro S&P500 (UPRO) and Direxion Small Cap Bull 3x Shares (TNA) on Friday, but the market provided little opportunity. Very small loses of less than -0.15% taken on each.
- Bought Netflix (NFLX) Nov $160 calls at $7.30/share on Friday. Looking for a bounce off of the 61.8% retracement level.
- Will watch market action for the first 30min to 1 hour of trading before jumping into anything else
- May book the gains in my NFLX calls if they make a nice move today.
- Make sure to get Adam's Watch-List for today.
- Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else's).
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