Wednesday Recap

Stock continued to move higher off Monday's lows, with a close near session highs.

That possible inverted head and shoulders I've highlighted this week continues to look promising.



Also note how that $IWM $120 test has acted as a spring board for higher prices.  

Where are stocks headed short term?  I'll get into that in a little bit but with the FED out of the way, I think we can go back to looking for a pull back in $TLT.  That long term trend line was kissed this week and now looks poised to send $TLT lower.

$AAPL continues to lag this recovery for the stock market.  I think that is positive sign, although not so positive if you own $AAPL calls (as I do).  An $AAPL recovery back to the $130 mark will send this market back to record highs in a hurry.

The stock is still in a massive 2015 consolidation phase that I think will ultimately lead to a move to $140 this year, but let's get back up to the top end of the range before we start thinking about a price breakout.

$FB was down early after the bell on earnings.  It's come back to almost even from the close.  This could be setting up for a move over $100 tomorrow.  If it stays at these levels  $96-$97  the $100 calls might be the way to trade this in the morning.

and $WFM is getting crushed after its earnings report failed to impress.  Support has held thus far but aside from those short, or in the puts heading into tonights report locking in profits tomorrow morning, there isn't much else to say.  I was positioned for a bounce via $41 calls as the stock has leveled out after hitting long term trend-line resistance at $55.  That price level isn't going to be seen for quite a while for $WFM.  I could see it tip toeing long term support for quite a while.

On Monday I said for stocks to rally we needed China to settle down.  It has.  We needed the VIX to get crushed.  It has.

What a remarkable two day beat down.

Okay speaking of beat downs, a stock I had been looking for to bounce from recent lows got killed today after its earnings did not go over well with investors.

What a long strange round trip its been since 2013

ahhh and on to where the market is headed in the days and weeks ahead.

If the global stock market crash headlines fail to re-appear (China) and volatility/fear continue to evaporate, I think stocks are on a collision course for new record highs.  If you read my other recaps this week you knew I was going to say it.

Monday Recap


But there you go.  Record highs.  It's not exactly going out on a limb.  But it's not something you hear all the uber bears saying either.  For the 400th time, if we've learned anything since the lows in March 2009 its that any and every dip has resulted in new record high stock prices.  Why would the most recent dip be any different?  And if and when the dips don't get bought anymore.... stocks will fall and we'll profit from a market trending lower.  For now the trend remains up, north, higher, ascending.

Stay tuned for the option market recap and more...

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.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply