What a wild ride we had yesterday!
The markets looked like we were going to be off to the races with a nice gap up in premarket trading.
That strength was short lived as oil continued to struggle and we talked about that in this weekends market wrap video. We don't need oil to rise dramatically for the market to put together a sustained bounce but we do need it to at least stabilize and stop going down.
The sell the rip mentality remains in tact and trying to catch falling knives could do some significant damage to your portfolio as well as your confidence.
NFLX reported decent earnings and guidance after the close it had a nice pop in after hours lets see if it can hold.
The markets are gapping down with Oil making new 12 year lows. Ideally, I would like to see massive volume and some real panic selling after the open with a strong reversal to close out the day flat or even green on the day. Remember though, the market does not care about what I want!
Focusing on volatility has been working and will likely continue working until we have a strong reversal or at the very least some consolidation at these new price levels. UVXY XIV TVIX UWTI have provided some tremendous trading opportunities.
The snap back plays from the watch list started to work yesterday and then faded with the rest of the market. I am still watching that list and looking for other potential opportunities with that type of setup.
This is not the type of market to be playing gap up stocks off of PR.
Unless they cured cancer or won a trillion dollar contract that is going to be paid upfront and the money is already in their bank account or they report earnings that beat the street view by 3000 percent and they raise guidance for the next 3 years 10000 times above the most bullish analyst on the street.
Even then, it could be a tough trade so be careful out there.
Gappers up ZFGN SYN
Gappers down FOLD
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