Market Update: Thoughts and Charts

Real quick.  It's about 30 minutes before the opening bell.  Stock futures are ripping higher.  It was a brutal sell-off yesterday and in the context of any pullback their will be bounces.  It is precisely why I locked in some profits yesterday.  The bounce is shaping up like previous bounces we've seen over the last month.  And I think the end result will be the same... it gets sold, much the same as all the rips have been sold.  The key will be timing.  How much further does this relief bounce have?

On Friday it lasted most of the session before the bottom fell out.

MY $FFIV puts are still in the fridge marinating.  Amid a massive pullback yesterday  $FFIV almost closed higher.  I still think the price pattern is pointing toward $80 or less before the year is through.

Again as the market corrects further it will take all the ships down with it.  Even those Cruise Liners that have been impervious to downside.  This is why I like $CMG for further downside... carnitas be darned.

and $CRM.  Wow did that work yesterday or what.  The stock dropped under $70 late in the session.  Those $71.50 weekly puts went 100%+ in the money.  Here is my chart from yesterday after the open.  Yes.... $CRM started yesterday higher... ended the day down 3%+ at $69.  Those $.78 $71.50 puts closed at $2.45.   Yow.

and my view of the market remains unchanged.  A move to the August lows and possibly under that is the scenario I am trading for.  These bounces will be tough to trade, and may dissuade those calling for more downside.  It's not going to be easy.  But if this move continues to go as expected its going to be a memorable 'fall'.

What a tremendous day yesterday.

See you in the chat room for 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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