The market dropped again today, but it sure didn't feel like it. $TWTR, $SCTY, $Z, $DDD, $GOOGL, $NFLX, $FB, all rallied on a day when the S&P 500 and Dow Jones Industrial Average were down over .5%.
$TWTR brought home the bacon today as the stock soared over 6% sending the CALL holders home very happy.
More on Twitter below.
Here are today's unusual option activity scans and stock scans.
Unusual Option Activity 3-24-15
The market was down with financials leading the way.
Commentary:
After yesterday's late day swoon it looks like market participants decided to start their selling a little earlier today.
Where is support and when will the selling stop? Good question. I'll give my answer in one simple chart:
I don't think the rally is over yet, and I don't think we'll get any meaningful pull back until we've significantly breached record highs.
Helping to put stocks in rally mode is the US Dollar pull back.
Rally or pull back, individual names continue to work in 2015. If the market falls again tomorrow I still feel comfortable in my longs, if it rallies tomorrow I feel even more comfortable. A great tweet from traderstewie tonight says it perfectly:
Trades
$TWTR is a stock I felt would be one to own heading into 2015.
Even last week with the stock trading at $46 my market video covered the pending move to over $50 a share as the stock was putting in a nice bull flag formation.
Despite the FED removing patient from it statement last week, patience in this market continues to pay.
Last week was $GPRO, $WYNN, $TWTR, $TSLA, and $JPM. This week is $SCTY, $DDD, $TWTR, and now patiently waiting for $Z to bring home the bacon.
$SCTY and $DDD have very similar charts in that from a long term perspective they are at support.
Here are the market videos I did on both of them yesterday:
I continue to trade for a move higher in both as I think current support as well as short covering will work as a springboard to higher prices.
$Z is still waiting in the wings. The stock tried to break out late in the session, almost hitting $109, before fading into the close back to $107. The call options are cheap in my opinion, which is why I own the $110 calls for a sharp move higher into weeks end.
Conclusion:
It was another great day in the chat room. $GOOGL and $NFLX calls were hitting big for traders, as well as $TWTR and $FB. Tomorrow is a new day. Nothing is ever 100% certain but I think the market trades higher into weeks end. It's been a nice pull back to start the week, but low yields, low interest rates, stock buybacks, central bank easing, all these themes trump whatever else is going on, including more Greece news.
Have a great night.