Wednesday Recap

After yesterdays late day swoon, the market hung on to early gains to close in positive territory.  The FED minutes  released two hours before the closing bell provided opportunity for a few "wild swings" before stocks decided to close just off session highs.  The NASDAQ led the way,  even the likes of Zillow closed sharply higher.

Today's Unusual Option Scans and Bullish/Bearish Crossovers:

Unusual Option Activity

Bullish/Bearish Stock Crossovers

Let's cut to the chase.  I've been saying this in almost every recent recap.. the VIX has been the tell.  The clue.  The Fix. The Lead.  The VIX has been saying all along that this market isn't going much lower.  That each pull back is just a an act of going through the motions before record high prices are here again.

The VIX remains muted, quiet, tired, and has offered nothing but a big yawn on almost every recent pull back.  I think it heads lower still.

What does this mean for stocks?  Higher prices.  The market is getting to a point where its going to stop fooling around, or fooling the bears into thinking downside is coming, and make a swift move to record high stock prices.  Things are literally coming together for the $SPY.   The $IWM and $QQQ also look poised.  This is what I am seeing as the outcome.

The bond market continues to gyrate.  The $130 level today like yesterday, acted as key support.  The next time $130 breaks I'm not sure it bounces like it has the last two days.  I think that break under $130 will come as soon as tomorrow.  I still hold some $129 calls in anticipation of a pull back.  The timing will be key as these expire on Friday.  I will likely open up some PUTs a few weeks out tomorrow on any strength.  I will post my entry on the private twitter feed when it happens.

$GOOGL remains a put play until it can break back over $550.

....and finally $AAPL.  Today's downgrade has opened the door for an entry in the name.  I am looking at next weeks $128 calls for $.75.

The broadening descending wedge is still respected.

Stocks to watch tomorrow:


Have a 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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