VIX 25 + Divergence Signals Short Term Reversal

Sold $BOOT  +7% Got a buy signal (or cover signal) on the VIX today around 25.  A rare occasion where the market went up a lot, then the VIX also went up showing a ton of hesitation buy traders.  This is coming ahead important Fed news, which produced a ton of selling in the afternoon to wipe out most gains.  Tape is very much dominated by day-traders and algos.  Until volume picks back up, we’ll continue to get wide spreads and inefficient bid/ask pricing.  Use limits, otherwise slippage will own you. The strategy would be to buy up some beaten … Continue reading VIX 25 + Divergence Signals Short Term Reversal

Long Cloudera [CLDR] – “Cloud Dare Yah”

Machine learning for the cloud.  This company is all about tomorrow, or maybe the day after tomorrow since its product solutions is exactly what will be in demand once our working economy shifts from dumb labor to routine robotics.  When will that be?  Maybe a few years down the line, but by then Cloudera will have positioned itself to have its 10,000 hours in and their software will be heavily sought after.  Data and what you do with that data is the life blood of machine hardware application. For now, the stock hasn’t been treated nicely.  Even after beating on … Continue reading Long Cloudera [CLDR] – “Cloud Dare Yah”

TLRY, A Chart Fueled By Emotion

  September 19, 2018 will be a day remembered for a long time.  There’s so much story behind the celebrity stock TLRY-  weed, speculation that medical companies need to hedge their position in the chance of legalization, a 400% 3 month return, a 1 day 94% gain, to a loss in mere minutes, several halts due to volatility.  This is 10x more exciting than any cliche stock-trading movie on Netflix. High flying stocks are so hard to short because as this case study on TLRY shows, there can be up to 7 buyers that can squeeze this stock to new … Continue reading TLRY, A Chart Fueled By Emotion

Short SFIX

  As mentioned before, the market is in clear “melt up territory.”  And this presents us with some great shorts.  StichFix (SFIX), has had unusual bidding behavior, probably from a combination of short covering and market makers bidding it up for no reason.  Anyway, this stock will trade in the 27.50 ~32.50 region soon, so an entry on this triple green bar is solid.  There’s a 10% upside and 40% downside at this price… SFIX has entered greedy territory and gonna snatch some of that premium back from the dreamers.   Short 43. Continue reading Short SFIX

BABA the leader

  To which direction?  170 is a massive and important line.  I held shorts in $BABA north of 200, covered under 180.  Played the usual bounce through $TCHEY, $MOMO.  Very important 10 point channel here between 170-180.  There could be a rebound, but getting to 200 would mean some serious news or new money, which is hard to grab here.  Short here or above 180, or any other related Chinese stocks with a stop at 190. BABA has been riding the AMZN wave, so it’s more properly priced around 140. Continue reading BABA the leader