June 13, 2014

Old Habits Die Hard or If it isn’t Broken – Friday’s Chart, $AMZN

The futures roll kicked into high gear on Thursday after the close, as the September $NQ_F closed at a $4+ premium instead of a $9.90 discount to the cash.  Sure there was some ‘catch-up’ with the cash markets opening higher on Friday, and some premium did come out of the futures, but overall Friday’s levels tended towards premium versus discount.  Along with another weirdly timed company analyst adjustment this time around from INTC, goosing its outlook.  The markets complied by returning to buying first asking questions later mode.  I wouldn’t whine about the volumes, since there was plenty to trade but they remain towards the low end.


priceline-logo-223x58Not so sure Wednesday’s buyers in PCLN got the correct email – seems the company is buying OPEN, (Open Table) for $2.6 billion and that has shaved over 6% of PCLN’s price.  opentableYes, Gracie there is still a great deal of dollars being tossed around in various forms.  Off the top of my contrarian head I wonder how much of that $2.6 billion is actual cash and how much of it is stock and who’s?  The chart pattern is not all that positive from the daily on out to the monthly view.  Price swings are likely in both directions but it appears the overall bias or trend will be down till the end of June and the 2nd quarter.  Look for volatility to kick up a few notches as well.



logo_luluLULU continues to get trashed after gapping lower on Thursday’s open, but appears to have completed 5-waves down off of Tuesday’s $46.29 high, which is allowing for an A-B-C relief bounce.  Here again, the chart pattern is not all that convincing just yet the LULU has turned the corner and is ready to head higher.  Fortunately, there has been a nice uptick in volume as traders begin to take notice.  I ran it through the Eagle and both the down move Friday morning and the up move the balance of Friday’s session provided plenty of opportunity.  If you choose to partake remember to adjust your strategy, (tweaking) accordingly, which may include position sizing, profit target adjustments and risk management adjustments.  Also keep an eye on the requirements to trade – those being a tight bid/ask spread, solid 2-way trade, and expanding volume.


amazonlogo2I’m continuing to run $AMZN through the eye of the Eagle in conjunction with the ATR indicator.  The generated signals are smoother and in better sync.  Volumes have remains solid.  Today’s option expiration hopefully has not drained momentum.  As long as volume and good 2- way trade remain AMZN should continue to provide numerous opportunities to trade.  Next Friday is the larger monthly options expiration.  Check out today’s chart for trades and discussion.

6-13-2014 7-15-07 PM_AMZN_EAGLE



mkt_header_05252013_shutterstock_116868523Steer the course and don’t compare yourself to everyone else.  You are not they and they are not you.  Remember to trust and believe what makes you unique at this moment in time and in this situation and allow others to choose for themselves.  Don’t be swallowed up by the chaos and false emotions swirling around.  Remember it’s just a number.


Trading the number remains key to being able to reduce and separate the “noise” from opportunity.  This takes knowing and executing a well-defined strategy and allows you to see opportunities amongst the “chaos” and by trusting the mechanics of your strategy, be able to take advantage of them.


Opportunity continues to knock on our doors.  While it doesn’t come without risk, risk can be defined and more manageable. Volatility and broad moves are exactly what a day trader desires and being able to respond without questioning is a luxury many are unaware of.