CRON with an absolutely huge reversal day in the works

Surprised AMZN hasn't responded much to this move. Still down 52.50

Sucker rally or will it hold?

FriscoKid said:

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Sucker rally or will it hold?

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Well 1st thing we have to consider is all this action is still below yesterday, so on trend its just an upside down day.

So all the money coming in only sets a base if more money is willing to flow in tomorrow forward.

The way I'm approaching today was mainly selling Puts just below the stocks trading point in entry. Example. I sold V $135 Puts when it was trading just below $136.

I also bought shares of V at $136 and sold a 136 covered call for $3.35. So I either make $3/share or of below $136 I'll own it for net $132.65.

There is a bearish breakout now on the trendline.

Are you out of the original V calls?

Rally underway.

We may end up closing that gap today

AggiePeeps06 said:

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Are you out of the original V calls?

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Nope. I held the $150's out to Nov 16. I think they blow out earnings for a nice pop. This market sets up for a nice continuation reversal, even if it doesn't have major legs.

And don't look now but even that dog SUM formed a reversal bottom with volume.

I'd feel very confident in getting into that here or selling Puts at $12.50, or both.

I only placed 20% of my dads monies back in. I went 100% with kids and 40% with others.

Watch for the h pattern to be broken. Will post example in a minute. Get that and we can get a further move on strength.

gougler08 said:

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We may end up closing that gap today

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That's crazy.

FriscoKid said:

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gougler08 said:

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We may end up closing that gap today

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That's crazy.

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Agreed, I just have no idea what it means. Reversal off the bottom today? Dead cat bounce and follow the "h" more tomorrow?

So you can see the curves on the continuation uptrend over past weeks. Last selloff formed the same h pattern but reversed before follow through. The arrow points to when the h is considered broken and should be an "all clear" to jump in.

Our current h correctly pointed to a deep dive and it found support which generally assures at least a gap fill. Well that happened intraday which has to be looked at as pretty darn strong. The big arrow points to when the pattern is completed/busted signaling a move back upward. Hopefully for all the 401k peoples who do nothing this signals a sideways major support above 2700 through the election.

Going positive

Would be nice for election purposes

And never forget that once that gap got filled the odds are very high that a profit taking retreat occurs. If we hit 2755 I'll take off some profits BUT re-enter on anything below 2735 on pullback. Profit taking generally come in on the gap fills.

HOWEVER - pay attention to volume because coming off a reversal big money might crush shorts with a continuation move making the dip very thin.

We filled that gap...now where does it go?

Still can't believe AMZN lagged the moce staying -52 well into the recovery. Got my dad and daughter in calls and just sold 30% leaving 70% net free.

I didn't enter for myself because I'm am idiot.

gougler08 said:

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We filled that gap...now where does it go?

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Watch to see if we get a nice long red candle down around 2735 - 2740 and buy your favs.

gougler08 said:

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We filled that gap...now where does it go?

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2731

oh, who the heck knows

Think I'll hop off these puts now if/when we sell off in to the close and see what happens tomorrow to either confirm we're done w/ the "h" or back in to it

gougler08 said:

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Think I'll hop off these puts now if/when we sell off in to the close and see what happens tomorrow to either confirm we're done w/ the "h" or back in to it

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Odds are we head up. Ton of big money required to fully rebound like this.

And here comes your post gap profit taking drop. Bulls could crush short entries so never enter shorts on gap fill pullbacks.

welp, i'm glad i took my third of the table this morning to pay my principle. I still think it's a sucker rally, but it's all house money at this point with expiration tomorrow.

Anyone want to call the ROKU bottom? It didn't quite fill the August 8th gap but came close. Buying $56 weekly around 85 cents looking for early follow through tomorrow.

oldarmy1 said:

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gougler08 said:

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Think I'll hop off these puts now if/when we sell off in to the close and see what happens tomorrow to either confirm we're done w/ the "h" or back in to it

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Odds are we head up. Ton of big money required to fully rebound like this.

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I'm just leaving a little bit on AMD to see if it continues down after earnings tomorrow as well as SQ to see if it finishes out it's h or not, will be out quick tomorrow if SQ pops up

Lots of hammers forming today, has to bode well for tomorrow to continue up

Hopped in on short term calls for LUV and PNC off their hammers/gaps to fill, hoping for a strong opening tomorrow to flip them quick

I hope so, we have essentially wiped out the results of the last quarter

TXN with weak guidance. Would love to own that stock around 80-85

leoj said:

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TXN with weak guidance. Would love to own that stock around 80-85

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If it breaks this main support at 95, you'll have the opportunity. Anywhere from 70-90, IMO.

70 would be nice

So unpredictable coming off these bottoms. Straight up continuation would be unusual unless a more permanent bottom. We could continue seeing volitality above the lows. Back and forth action would drain premium from options - which would suck for straight options plays but be great for the covered calls or other sold Put strategies.

Futures basically flat right now, guess we will see what Asia does

oldarmy1 said:

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So unpredictable coming off these bottoms. Straight up continuation would be unusual unless a more permanent bottom. We could continue seeing volitality above the lows. Back and forth action would drain premium from options - which would suck for straight options plays but be great for the covered calls or other sold Put strategies.

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The charts look like crap. I still think that was a retrace. We still broke through some pretty major support and if you look at a YR chart it looks bad. You might be right, but the "bottom" today was not convincing.