Thursday Recapus Verrucosus 2-5-15

It was another rough day to be short.  Yesterdays late day trading action and after hours movement looked ominous for today's session.  Stock futures tumbled as the ECB dealt a blow to Greece.  But as the hours progressed futures found footing and began to rally.  Stocks closed trading near highs of the day.  A key level was broken and looks to take some uncertainty out of the short/medium term outlook.


S&P 500 futures have finally broken multi-month resistance and looks to be setting up for a run at new record highs.

The $SPY is up over $8 from Monday's lows, an impressive start to the month of February.

$FEYE rallied some 6% after a sercurity breach at Anthem.  Following $FEYE was $SSYS a great bottom trade off the lows earlier this week.  $DIS continued to fresh record highs today.

$YHOO sucked wind again today turning my call contracts into $0.00.  I was a little early and I am paying the price.

$TWTR is working well after the well, hitting over $46 a share.

$GPRO was up, now its down.  I sold half my calls into the close and also hedged with a few puts.  These earning trades, while potentially explosive, they can also blow up your account if you don't manage size.  A little dab will do, and if you decide to go big, hedge, do a spread instead?  But don't be throwing 100% of your capital at an out of the money option trade.  If you are doing that, you need to sit on your hands and rethink your strategy.

$LNKD is ripping higher tonight along with $TWTR.  $YELP and $GPRO are tumbling.  Congrats to all who got those right.

Tomorrow is the jobs report.  My guess?  Whatever the number is the market will shrug it off.  In the face of some potentially nasty headwinds, the market has sharply rallied.

The Nasdaq still needs to break trendline resistance, which would in my opinion trigger a move to new record levels for the $QQQ.

If the initial reaction to tomorrow's job report is lower, I will likely be a call buyer for next week.

It's been a long week, a good week, but a long one.  Each trading day feels like many trading days wrapped in one.  The trading action in TWTR and GPRO after the close today epitomize the market.  They both reversed course in rapid fashion, with $TWTR trading down to $37 and then rocketing to $46, while $GPRO went from $62 to $45.

Despite the sharp moves in the market, the 100+ point Dow swings, I think we could see the upward trend resume into the Spring, with a break to new record highs coming in the next couple of weeks.

The sell-off that started 2015, will be a distant memory, and we can all start talking about how abnormally low the VIX is.

I'll be in that chat room tomorrow bright and early!  See you then.


On a side note it seems Sport Illustrated is featuring a plus size model in their Swimsuit Issue.  I wasn't expecting to see Rosanne Barr, but geeez... no wonder ladies have an image complex these days.  Was this model plus size last year and then starved herself for 3 months?  She's got more bones poking out of her than a Walking Dead Zombie.... Good night!

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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