Monday Recap

When I awoke this morning DJIA futures were up over 100 points... or perhaps that was just a dream.  By the end of today's trading session it sure felt like it.  Another manic Monday choc full of headlines.

Just before the market opened for trade I posted this chart and noted how weakness was starting to take hold as the overnight exuberance was starting to fade.

The market stabilized at the open, but then a wave of selling took over and the indices plummeted.

Despite the morning collapse not everything was trading lower today.  $TWTR neared $41 before suffering a sharp reversal.

$FEYE was already soaring higher when word of the ISIS hacking started to spread.  The Cyber Security theme is a popular one this year, and rightfully so.  I think the stock has a lot more room to go higher, but keep fresh in your mind that last Tuesday $FEYE dropped over 8%, and was under the $30 handle.  Tuesdays and $FEYE don't seem to mix, let's see if tomorrow is different.

Who can go a trading session these days without talking about crude oil?  Oil continued its move toward $0.0001 , with a 5%+ plunge to the downside.

And the US Oil Fund

Some of the USO strikes today moved over 100%, and had this move happened in the mundane months of spring last year they'd have moved over 200%, but the market is already pricing in significant price potential.  100% is still a very nice gain....if I do say so myself.

If you didn't catch this article from the morning reads, I am posting it again as I think it gives a great overview of what looms ahead for the banks amid a crumbling oil.

Earnings season is kicking off this week.  Alcoa reported earnings tonight:

Alcoa (AA) shares rose 1.4% to $16.39 on heavy volume after the company reported adjusted fourth-quarter earnings of 33 cents a share on revenue of $6.4 billion.

Analysts polled by FactSet had forecast a profit of 28 cents a share on revenue of $6.04 billion for the aluminum giant

We have $JPM, $WFC, and $GS leading the way this week.  Earnings season really starts to snow ball into the end of the month.  Take the recent volatility , add earnings season to it and we could be looking at some even more bumpy trading ahead.

What Will Tomorrow Bring?

The $SPY broke through key Abenomics support today.  Overall the S&P500 is in a channel and finding support at the upper and lower ranges

The trend remains to the upside, but the crash in oil presents uncertainty.  Once the price of oil stabilizes I think you can be more confident about this market making the move to new record highs.  But until that time happens, indivual names continue to work.  $WMT, $BIG, $TWTR, $FEYE, lower prices at the pump are giving consumers more money to spend... in theory.  We'll know more when earnings reports start to come in.

The market has been lower 7 out of the last 9 trading sessions.  This is certainly not a good sign.   However take it with a grain of salt..... Today I saw one statistic that compared the recent trading to previous times in history and noted that any sell-off similar to the one we are experiencing to start 2015,has resulted in a year of negative returns only ONCE.  The odds still favor a positive year for 2015.

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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