Just kidding. Everything saves this market. Regardless I don’t see us out of the woods just yet. We had a remarkable turnaround on Friday, but I wouldn’t say the coast is clear. As I’ve been saying for several weeks now the short term trend is choppy consolidation. The longer term and intermediate term trend is higher. We have a huge week of earnings with some of the biggest momentum names reporting, NFLX, CMG, AAPL, FB, AMZN, BIDU, V, GILD, CELG, BIIB. I definitely think we are going to get some great opportunities out of these names and they can potentially be a catalyst to get us out of the chop. Any weakness at the start of the week I will see as a gift and buying opportunity. If we start the week very strong I will be a little more cautious because the open interest for next week on SPY suggests that 198 could be an issue. When I see such a high open interest call strike it often means either choppy action throughout the week or a strong start followed by a later pullback. 
The way I see the recent action is that is it building strength through consolidation for a more powerful move to the upside. The market has done a good job working off overbought conditions based on stocks above their 50-day MA’s. 
The market also got good news with many of the financials reporting better than expected earnings. If financials can start to pick up from being laggards that definitely bodes well for the on-going bullish thesis. Regardless of if the short term trend might remains choppy and if global uncertainty leads to short term news-related sell offs, with earnings underway there are going to be some great opportunities for traders with individual stocks.
Once earnings for each company is released you should definitely take a look at some of the open interest (especially on high flyers). I may post some throughout the week on my SassyMusings blog. Often even really bullish earnings on a stock can take it higher, but not as high as it could have gone if not for heavy open interest call strikes. For instance, I think GOOGL would have closed higher on Friday if the highest call strike hadn’t been sitting at 600. That’s one stock I think will be going higher next week.
Good luck next week!
If you are looking for some guidance with trades, open interest info, plus other good stuff then check out a subscription. Check out the testimonials as well.
Only Earnings Can Save Us Now
Just kidding. Everything saves this market. Regardless I don’t see us out of the woods just yet. We had a remarkable turnaround on Friday, but I wouldn’t say the coast is clear. As I’ve been saying for several weeks now the short term trend is choppy consolidation. The longer term and intermediate term trend is higher. We have a huge week of earnings with some of the biggest momentum names reporting, NFLX, CMG, AAPL, FB, AMZN, BIDU, V, GILD, CELG, BIIB. I definitely think we are going to get some great opportunities out of these names and they can potentially be a catalyst to get us out of the chop. Any weakness at the start of the week I will see as a gift and buying opportunity. If we start the week very strong I will be a little more cautious because the open interest for next week on SPY suggests that 198 could be an issue. When I see such a high open interest call strike it often means either choppy action throughout the week or a strong start followed by a later pullback.
The way I see the recent action is that is it building strength through consolidation for a more powerful move to the upside. The market has done a good job working off overbought conditions based on stocks above their 50-day MA’s.
The market also got good news with many of the financials reporting better than expected earnings. If financials can start to pick up from being laggards that definitely bodes well for the on-going bullish thesis. Regardless of if the short term trend might remains choppy and if global uncertainty leads to short term news-related sell offs, with earnings underway there are going to be some great opportunities for traders with individual stocks.
Once earnings for each company is released you should definitely take a look at some of the open interest (especially on high flyers). I may post some throughout the week on my SassyMusings blog. Often even really bullish earnings on a stock can take it higher, but not as high as it could have gone if not for heavy open interest call strikes. For instance, I think GOOGL would have closed higher on Friday if the highest call strike hadn’t been sitting at 600. That’s one stock I think will be going higher next week.
Good luck next week!
If you are looking for some guidance with trades, open interest info, plus other good stuff then check out a subscription. Check out the testimonials as well.
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