Charts and Thoughts

After starting the session strong, stocks pulled back into the close.  Some of the best performing stocks from last week were the worst performing stocks today.  All was not lost though, as small caps were able to muster a positive close.  When the overall market isn't heading higher its busy consolidating and that is what we saw last week until the break higher on Thursday and Friday.  Today we closed at trendline support.

How about $NFLX?  Positive analyst action helped  the stock soar higher.  It's been quite a run.  The $500 calls are a microcosm of the $NFLX option chain with enormous gains across all strikes.  This is on top of last weeks rally. 

Option and Stocks Scans:

Unusual Call and Put Activity - 4/143/15

Stock Bull and Bear Scans

$NFLX reports earnings after the bell on Wednesday.  I'll have more on that in the market video and earning reports.

The VIX, the muted VIX, the yawning VIX, the carefree VIX over the last month has been drifting lower  in spite of market volatility, pull backs, and sell-offs.   It was 'the tell' that stocks were poised to head higher.  Today the VIX spiked over 10% higher.  It bears watching this week.  I still think it trades to the lows of last July, but we could see further upside, which may lead to lower stock prices in the short term.  In the face of any pull back individual names will continue to work, as has been the case in 2015.

Bonds remain at a crossroads.   The obscene yields, or more specifically the lack there of,  over seas are helping to keep a bid under treasuries here in the U.S.  If the market continues to pull back we should see bonds rally, which will put $TLT over trendline resistance.  That would be a nice set-up for upside.  However until until that happens, if it does at all, I am still trading for $TLT to go lower.

$GOOGL was busy trying to break out this morning.  For several hours today $GOOGL traded over its key support/resistance level of $550.  It could not keep its head above it for long and closed a few dollars below it.  I can't take a position until I see this resolve one way or the other.  Is $500 coming or $600?

$IWM is back to its old tricks, outperforming S&P500 and the Dow Jones Industrial Average.  Biotech was also strong today.

Tomorrow morning before the bell we have $JPM and $WFC reporting earnings.  Both reports will be closely watched and may help dictate where stocks trade.  I think today's sell off has more to do with the upcoming earnings season than anything else.  With stocks a stones throw away from fresh record highs it makes sense to take some off into earnings reports.

Check back Tuesday and Wednesday for key earning report analysis heading into $INTC,  $NFLX, $SNDK, $AXP earnings and more.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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