Short & Sweet

Boston pulls off a huge win in Game 1 last night by a margin of 13-1. That was the game they needed to win in order to take this series. Rockies fans, I am so sorry...but at least you got good seats to the big dance.

If you are not long some CME, or any exchanges at this point, look a little closer at them. With record transaction volume and commissions, it's hard not to be loving these to the upside.

At the same time ISRG, FLIR, ESRX, LFQX, NUVA, MON, LFG, CNX, SOHU, ALXN, TSCO, GLYT and EMC have elevated my mood today.

If you want a similar feeling, you need to be watching the following today...


But if you are bearish...


...If you are in the market for good looking set-ups that is. Or if you just want to make some money with me today.

I am going to keep it short and sweet today, and go out with some 311...

Recommendation: Stop whatever it is you are doing today and make money.

Long: Colorado Readers

Short: Colorado Rockies

Disclaimer: 311 has offered to play at our Option Addict awards ceremony in Vegas.

Hope you bought some POT this morning, look at that baby gooooooooooo........

Hope you bought some POT this morning, look at that baby gooooooooooo........

Great reco's Jeff! Thanks again!

Is anyone following the slide in CFC over the last few weeks? Down almost 37% in the last three weeks!


MOS is screamin higher too

i am gonna get in on those trades, I need to balance myself out and now is the time.

I love that 311 song, what is sweet is my friend can play guitar and drums at the same time and play that song.

I wish I was still holding EMC, haha.


Can someone explain SII as a bearish set up? It has been uptrending since early this year. Is this a specific type of reversal that I do not see?

Jeff, I want to thank you for your teaching of PATIENCE. Iwould have bailed at just the wrong time this morning on POT (I actually had my finger on the sell button) but I waited... I am slowly but surely getting better at trading.

SII broke its uptrend weeks ago, and rolling over and confirming a lower high.

If you don't like it, please dont trade it.

Chris, I read your comments from the last thread... Why do you even TALK?!?!?!? UGH!?!?!

I have a feeling that our exile to the bowels of the Dungeon of Shame may soon be confirmed... even though XOM is down today, it's obeying that intermediate term trend line. Oh boy... I want my money back!

I gotta admit...

I didn't anticipate $90 oil today.

Any idea why AMX is treating me badly today?...


Bueller? Bueller? Bueller?

Something D-O-O economics.

VooDoo economics...

I know this may feel and seem like thunderous selling, but until 1490 is broken on the S&P, i see higher highs and higher lows since Friday.

Do protect yourself but don't get skittish on days like this UNLESS support is clearly broken.


I gotta admit...

When AKAM held the gap from the open I backed the f'ing truck up. This one's going to run up to $50.

I meant "Jeff", but Jff does seem way cooler.

I like Jff. It sounds more official. :)

SFI going to ? This thing just smells like AHM, NFI and all the other stuff that started a beautiful trend to the single digits.


Can anyone shed some light on stocks crossing round numbers?

I've been in DSX since 10/1 playing the cup and handle breakout. I took profits on 1 contract, and I'm letting the other one run. I won't be holding over earnings...

Any input would be appreciated!

Here's a solid China play:

YUM. Can you believe it? It's true. ANd it's breakout city.

Jeff: What is your take on ANW I know they are making a second offering but I do not see the price of the offering anywhere.

Is that trade over or could it still be in play?

Yum is yummy. Brett your ability to use the force is impressive. You are now a jedi master!!

Whoever bought the 100 Dec RAIL 40 puts at 12:26. I just bought 4 to open. Is that someone who posts on this blog ?


Raimo, not sure your in EGLE., but I keep hearing ,"Fly Eagles Fly on the road to victory " in the background.


PS. Forgot your hunting...never mind


I've been in and out of YUM forever, but just curious why you say its a China play, can you enlighten me....


Maybe Brett's referring to the press release...

"China's exploding growth and growing middle class has provided a big market for U.S. restaurant companies. Yum Brands Inc.'s KFC, Taco Bell and Pizza Hut chains have thrived, and McDonald's, with 800 Chinese locations, is ramping up development."

Applebees is opening up in China.


MCD - Breakout

I don't like McDonald's. I don't like the poison and chemicals they put in their food and then market it kids...
Just my opinion.

However, the breakout IS a thing of beauty. We SHOULD make some money off of THEM for a change! :)


Thanks that makes sense, I missed any press release they had...


Krystal, if you weren't so busy being upset at me, you would have listened to me this morning when POT was down $5.00. I said to buy, buy, buy. I embarassed myself all for the good of my fellow OAs. But did you listen? Did you mortgage the house and take the $9.00 swing that has occured today? If you had... you too could afford to shop at the dollar store.

Anne, looking at SII I would have to say that it broke it's uptrend when it reversed through the strong 70 support. The last few days it has been coming back to re-test the 70 level... now as resistance. I'd say today marks the surefire turnaround on it.

Been out all day dealing with real estate.

Just came in and was about to dump a trade I took in MMP when I noticed that over 3,000 puts traded in the strike I am in today. That's almost as many shares that were traded. What could that possibly mean?

DG, MY GOODNESS! MMP is only up a quarter today... who in the world traded all those puts?!?!?

Chris, excuse me for nursing, changing diapers, cooking breakfast, and going out in the cold to get clothing for my children this morning. I guess I was too tied up to fall all over myself reading another one of your goofy posts! And I'm ALWAYS upset at you! GOODNESS!!!

But I do wish I had gotten into POT today. That $9 would have been a thing of beauty. WWWWAAAAAAAA!

Now Chris, just go away! Sheesh!

VeroB, congrats on getting into MON yesterday. I'm not going to chase it but my 6.85 bid from this morning is now 2.00 out. Sigh.

MTRX is pissing me off. I got into it a few days ago when it looked like it broke out of it's flag pattern. It's done nothing but move backwards these last two days.

I'm happy for everyone in LFG. I somehow got into LFC instead which is doing nothing but go backwards. When I realized I'd gotten into the wrong one I brought the chart up and it didn't look too bad so I thought I'd keep it. Stoopid bloody moron.

I've been trying to get out of ARII for almost a week now. The spread on bid/ask is so wide that I haven't been able to get the price I want.

Excuse me while I head to the Dungeon of Shame. Something down there is calling my name. Krystal I'll keep a stone chair warm for you.

Thanks for the idea.
Looks like the MCD breakout will hold.

What another exciting day.


YUM is expanding like crazy in China ... The chinese love the KFC .. Chicken in China is high end stuff ... to them it is finger licking

Just wait till they get a load of Taco Bell ... there is not enough toilet paper in china when that happens!


Chris, I'm right behind you... me and my two AMX contracts...

I soooo love 311!!!
i feel like i'm in college again, nice pick JK....

now, i have to apologize for my recent absence, esp on a thursday....the day i normally blah blah blah all day long,

BUT.....more importantly, did anyone else get into LMT ??? it has been a beautiful trade so far, and don't forget TSCO.
Jeff, thanks for the heads up on these

Hey Brett,
I"m curious, you seem to have the knack of turning crappy Canadian companies into gold for you. CN Rail was a bum of a company but it seems to me you made good money on it... so I'm sure you'll do well with Rogers. I can sort of see where you're going with it... it doesn't have enough potential downside to make it worth looking at for me. Seems like everything I'm touching this week is turning to dog doo doo. Or rabbit doo doo. It's better because it just rolls around.

The great thing is that despite a horrible run since last Thursday, my head is only partly submerged. The account isn't all that bad and I think that all my stuff has just been conspiring against me. I wouldn't be surprised to see everything bounce off support this next week and I should head for the skies again.

I hope. Because this week has sucked royally.

But in a "If you kiss me you'll turn into a goat, instead of a frog" kind of way.

DECK just beat estimates, and raised guidance. It's early yet but the stock is up $9 after hours.

James H.

Hey DG,
Cast your baby blues on Krystal's AMX and tell me what you see in today's candle? It looks like it should be something but I have no idea what. It's a thunder stick or something, I think. It either means "buy me" or "send me to the dungeon."

Or "shut up and move on to the next chart."

I got back into MDC this morning around 10:45. Turned out to be great timing after earnings had been anounced but before the 11:00 AM earnings conference call. Anyone looking for a good put this one's a bit past REE but still has lots of downside potential.

I wanted to keep an eye on TSCO and didn't see the breakout of the triangle yesterday. Wish I had as it's textbook. I'm hoping it might re-test 45 hear before heading south again. I'm not going to chase it, but I will watch for the re-test.

So, does anyone have experience with broadening top formations? I have been watching ZUMZ with interest after JK posted his watchlist this week. This is the first I have heard of this formation, and apparently it is pretty rare, but I want to make sure I play it right.

Looks to me like $44ish was the breakout point. So, it seems that as long as it doesn't close significantly above that, the trade is still good. Today it closed at $44.07, which I don't think is a deal breaker.

Is anyone else following this? I'd love to hear someone else's analysis.


MSFT-good earnings report... up about 5% after hours. Hope this bodes well for tomorrow.


does anybody else see ARII at good REE???

my initial trade was entered on 10/8 or 10/10 as a resistance bounce and i sold on 10/22 for a nice profit, now as i revisit the chart i see a desc triangle that looks like it retested and turned down today...depending on where you/i start the desc resistance line the target can be ~ $3-$6
what do you guys see???


You might have me confused with someone else. I wish I'd gotten into MON, yesterday, but did not.


You must have gone to work, before seeing my question on the previous thread. But, I am wondering if you are still in YGE. It seems to range-bound at 30-33. If you are still working this one, what are your expectations?

Thanks for any input you want to offer.

I just added to ARII. I had an initial target of 19/20. I see a pretty decent line around 21.30.



I'm new to the broadening pattern, too. So I took this one as a paper trade on Tuesday in anticipation of a break to the downside (Dec $40 Put). It's down $85 right now. Today is my potential retest. I did a paper trade because that way, I'm forced to follow the play and I won't forget about it... can get you started with a little bit of information on the pattern...

BOOM up after hours on good earnings, and WFR is up big on earnings and new contract news.

Still waiting on RIO.

James H.

Chris - I'm in MTRX too and when I came home and looked at it today I said, "why am I in this?" I did buy Dec but if it doesn't turn around soon it is toast. ARII I got out last week for a small profit. It just seemed done.

VSEA down about $5 AH.

James H.

Chris and Krystal,
You both need a time out!

Yes, I have been following this one, too. I took the trade yesterday because I just couldn't help myself. A close above 44.70 is where I'll get out. I think it was the thread before the bear trap one where a few of us discussed the pattern. I, too, found it fascinating as I'd not ever seen it before.

I saw your post and this is the first spare moment that I have had to answer. I hope that you guys have a safe move and we'll have to get together if you visit.:-)

Chris - AMX, I see a huge selloff with volume. There seems to be some support at the 62.5-63 level. But I don't see a compelling bullish trade here. Yet.


You don't know why you're in MTRX?

I guess your chart doesn't show the massive flag breakout after a retest of STRONG new support at $27.

Mine does.

Barbara, you're right. I did not see your post in the last thread. My life is rapidly spinning out of control and I'm having a hard time keeping up, much less trading either. It's gotten to the point where I don't even know what trades I have going. When you can't remember what you're trading it's probably time to take a step back.

But to get back to your question on YGE, I got out of that trade after just a couple of days when it looked like I was going to be giving back all of my profits. I still like the stock and think it has legs but I'll probably re-enter as a stock play because the ivol is ridiculous. I'm watching it.

Tonya and liz,
I'm in ARII alread and having a devil of a time getting out. It doesn't trade a ton of volume and the spreads are pretty wide. I think I'll stay in it for a bit and see if this really is a REE or if it's a fake-out. I've made money on it (unrealized) so far, but it's getting stale in my mind and I've tried to get out of it for a while now. Maybe that's part of my problem this week... I'm getting impatient. Hmmm I'll have to look at that. Probably because this stone bench in the Dungeon of Shame is getting very uncomfortable.

Krystal, the research I've done on the Broadening pattern says that the time to buy calls is at the point where the price touches the bottom trendline for the 3rd time. That's right now. It touched it yesterday and bounced upwards today. It looks to me like this should bounce up at least halfway through the triangle and this is the point where it could turn around and head south. Once it breaks through the megaphone on the way down, it will likely re-test the bottom line before eventually heading down again. There is the chance that this bounce could continue all the way to the top of the megaphone. Once at the top it will most often bounce down.

Don't know if that helps. Or did you have your fingers in your ears yelling "la la la lalalalala?"

My chart DOES show the flag breakout which is when and why I entered. And I guess that's why I didn't close it this afternoon when I checked my account. If it goes down back to within the flag though, isn't it broken?

When I questioned why am I in this, I had looked at my account, saw the loss and didn't remember when or why I entered. I told you, I'm losing it. Trying to do too much and as a result I'm doing everything poorly.

I don't want to whine now but I need to find some balance in my life. I feel like a hamster on a treadmill, going nowhere in a big hurry.

Thanks for pointing out the validity to what I was seeing in MTRX. I knew I saw it but this is the second thing I've done today that is pointing to the fact that I'm getting impatient in my trading. Thank you. And thanks for pointing the finger at DG even though I had said the same thing... I wanted out because I was getting annoyed that my instant gratification buzzer was not being pushed. It is a perfect setup of a retest of the flag breakout. I will sit on my hands (because the stone bench is cold anyhow) and re-evaluate every trade that I'm in right now.


Remember that broadening formations and reversals in general require time to play out.

I hope no one dabbled in Nov options...

The market will punch you.

A lot of the earnings look good this evening. Futures are up. We'll see what tomorrow brings.


I want to know why they call it "diluted" earnings.



Tell that to someone who isn't holding BIDU options.

Ouch. At least I kept Decembers. Man, 113% income and 107% revenue increases from last year and the market gives it a 4% haircut.

Talk about expectations!

Hey, at least it's not down to $300 where it was when the news was released...YET.


BIDU sees an increase of 107% but the stock is going down. I seriously don't think I'll ever understand why people react the way they do. It just makes it even more clear why Jeff and Eric and all the other long time investors talk about reacting to what the stock does because you never know how investors are going to react to the news. Seriously, weird!


I think it's headed to 300. Unless, by morning it does a swing upwards. It could happen.


I understand your delemma. This options stuff is very addicting, but there are realities in life that must be looked after. Try scaling back your trading a bit and only deal with 5 to 10 options at a time. I had to do that for a while as I felt like I was trying to juggle too many balls at once.

On a completely different note... I made spaghetti sauce this afternoon and if the USS Eisenhower pulls into our pool, I think I'll be able to feed the whole boat. So I must now make haste and get the kidletts fed as it's volleyball night.

Sorry, Brett. I didn't realize BIDU released today. Maybe it's an overreaction like AMZN was.


Brett, I'd have to assume expectations are high on a stock like BIDU that has what tripled on the year? It is trading at almost a 4 PEG now that I look at that seems over valued, however with that said if it holds 300 I am back in.

I do apologize to those holding it though over earnings, losses even on profits are no fun.


Liz & C2 thanks for your input

hope everyone has a good night, i gotta sign off for now....

"Dilute earnings" are earnings that will be dramatically different from the same quarter last year because more shares were issued some time during the year. Unlike... say... a rum and coke, being diluted is not necessarily bad. It just makes it difficult to compare year-over-year numbers.

Jeff are we playing MSTR for earnings..your favorite.

I am.

This is a very interesting chart. If earnings are positive could be quite a reversal. interesting that the price is sitting right at the same place as the last earnings announcement. Could it be a sign? you'll have to play to find out.

Jeff are we playing MSTR for earnings..your favorite.

I am.

This is a very interesting chart. If earnings are positive could be quite a reversal. interesting that the price is sitting right at the same place as the last earnings announcement. Could it be a sign? you'll have to play to find out.


I don't understand why people react the way they do either. BIDU just ran up 25 points on Tuesday, and now after hours today, it's all been taken back. Lol.

I wouldn't be surprised to see it run down some more in the morning after the earnings report comes out tonight. I guess we'll just wait and see...

wow things are good.

Great share, looking forward for more!

Post a Comment

About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
My profile

Prescriptions Here!

Other stuff

Blogarama - 
The Blog Directory
Directory of 
Finance/Business Blogs Finance 
blogs Top Blogs Finance Blogs - BlogCatalog Blog Directory