Thursday Recap

There was no currency flash crash,  no FED meeting,  making for a rather dull day, aside from some impressive stock moves in names such as $TWTR, $WYNN, $TSLA.   I could post a dozen assorted charts tonight,  but in the interest of time  I'll just keep it simple.  Keeping it simple usually is just the easier thing to do - That is a Captain Obvious Quote, if it wasn't already obvious.

$WYNN rocketed 6% higher today.  What a difference one day can make.  Yesterday I talked about how terrible sentiment was for the stock, and today investors couldn't buy it quick enough.  More on that in a few.  What about the market?  Where is it headed?

Tonights Option Scan 

Commentary:

I continue to think that the market is working its way higher after its recent pull back from record highs.  At some point in the near term the market will break out again to record high prices.  When will this record high come?  More than likely once the US Dollar rally abates.   It's been on a tear in 2015, something I said would happen at the start of this year.  In case you didn't read my predictions heading into 2015, they've been doing much better than 95% of the NCAA brackets out there (and we are only 16 games in)

2015 Predictions

Notice today's action coincided with a spike in the US Dollar?  Recent rally's have come with a weaker US Dollar.

Small Cap, Tech, and Biotech are telling you the market is not going to pull back.  Today the DJIA was down sharply, the S&P500 not so sharply, and the NASDAQ was green.

It's a rotation and it means the money is not coming out of the market, its just getting reallocated.

Today S&P500 futures came down to support.  I think tomorrow will bring higher prices.

TRADES

In case you missed last nights recap, this is what I was saying about $WYNN:

and the chart showing support:

The CALL options went through the Casino roof:

Patience again paid off.

It's also nice to be making money trading for upside in a market that is pulling back.  A theme I said was coming in 2015: individual stocks were back in play.  $TWTR $WYNN $BIDU $FB and early morning $TSLA all rallied in the face of a negative session for many stocks.

$TSLA continued it's rally early in the session.  No sooner than I happily closed out the rest of my calls, did the stock plummet, closing some $9 off the highs.  Ouch.  And it's why when you are up big on a two day move, it doesn't hurt to take it off.  Move on.  Tomorrow will always be there, but sometimes the bid for your option won't.  And that is a crappy feeling.  Especially after sitting on 300%+ gains.

$TWTR brought home the bacon today as well, in spite of a weak market.  The stock held the key $47 figure and then spiked over $48.  Not a bad week to be a buyer of $47 calls.

I have some $GOOGL and $JPM calls left for tomorrow.

 

Today was the market digesting yesterday's spike higher.  A pull back also emboldens the bears and sobers up the bulls.  It is healthy, and I like it, especially when the trades you make go the way you expect them to no matter where the overall market trades.

Have a good night.  (BONUS CHART BELOW)
Finally tonight's bonus chart comes from the makers of the Fear Index... the financial media!  In 2008/2009 the VIX traded on a chart that had swords and grenades on it.  Today it has plush Care Bears and Pink Unicorns on it.

The VIX is setting up for a further decline off recent highs.  Today was another day where the VIX just yawned.