Tuesday Recap 7-14-15

Stocks continued to move higher off last weeks lows.  Greece and China or as I like to call them - the #Cheeks - have moved to the background, while earnings season has taken the stage.  Financials were the first act, with $WFC and $JPM moving 1% higher after reporting earnings before the bell and helped move the market some .4% higher than yesterdays close.  New all time record highs were put in for many stocks today including the likes of $AMZN, $DPZ, $DIS, and $FB.

Today's Market Scans

Today's Unusual Option Action

Yet despite stock prices being a mere 1.5% from fresh record highs - The CNNMoney.com fear and greed index shows a market that remains 'extremely fearful'.    Go figure.

and yet this fearful market remains confined in a channel, with swings that remain contained.  Stocks haven't moved over 7% the last 6 months, one of the tightest ranges ever.

The market of 2015 has taken the baton from 2014, 2013, 2012, 2011, and 2010 in rallying in the face of these named sell-offs.    #Greebola

In my last few recaps and updates I've highlighted the case for new record highs.  Even in the face of last weeks dire market plunge, and fear mongering, stocks have remained the course.  Artificially low interest rates will do that.  The Pavlovs dog dip buying mentality will do that.  If every dip has been a great buying opportunity, until that cycle changes, it will be repeated.. over and over and over again.  And repeated it has.  Buy the dip, off the lows, buy the all time highs, buy buy buy buy.

Just Buy It

So what do you do now?  Stocks are rallying.  Greece still isn't solved.  China could crash like a drunk pelican.  I'll go back to the chart I posted last night.  It remains in play.

Let's get that GOOGL tractor beam over with.  $GOOGL $550 is done, finished.  It's finally made up its mind.   $GOOGL is looking to put in new all time record highs in 2015.  Will it be its earnings report that ultimately moves it?

Last night I posted my thoughts on Boeing and ultimately some trades I am looking to get into.  This morning I opened up some weekly $147 calls at $.80.

They worked for a nice move more than 100% before pulling back late in the day.  I locked in and I am looking to trade for a move into the summer and fall to new record highs.

$DDD trying for redemption this week after plunging to new multi-year lows.  The $17 calls were going for $.30 this afternoon.  Let's see if this stock can get itself off the ground, dust itself off, and mount a respectable bounce.

We have some big earnings reports tomorrow including $INTC and $NFLX.  I covered these two and more over the weekend.

$INTC the chart remains decidedly bearish and I am looking for a move lower post earnings.

$NFLX on the other hand, after the most recent earnings spike, I have a tough time seeing a repeat.  On the other hand the bulls remain ever increasingly bullish.  I think its setting itself up for a sharp pull back.  A 10% move is not out of the equation.  The market is looking for a near 9% move.

The question going forward is... what happens to all the fear once all these negative fear mongering headlines pass?  If the Grexit and China stock market crash are ok, what will it take to bring this stock market down?  For now the trend remains up.  The recent bout of consolidation in 2015 will lead to record high stock prices and the next named pull back will just be another buy the dip opportunity.

Have a good evening.

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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