Hey fellow traders, haven't done this since last year but I'd like to go ahead and point out a couple things. At the very moment we are at very important key levels for a major move in either direction of the overall stock market. If I were to have to pick a direction for the following 2 weeks according to all the indexes and all the record breaking overbought parameters being shown all over the place, looks like an incredible opportunity to short almost everything. There is a catch though, amzn and other individual stocks look to have been taking a breather for the past week instead of completely cliff diving downwards. What does this mean? Doesn't really mean much except that bulls do have a chance at another move higher. With tons of FOMO (fear of missing out) and short volume, we could be looking at a very good sized squeeze upwards. Going into the weekend it feels as if some sort of very vital news will arrive that completely pushes the market another leg higher or carries on with the bear thesis of the market going lower. Could very well be the shutdown being lifted or china trade talks going well or could be the complete opposite. I personally have a few calls of some names and I have a few strangles in play on the indexes for next week. If things absolutely go wrong into Monday my strangles should help capture the move from either direction if we go higher my calls should drive up nicely. All in all a very great week for many who captured the big moves and also the pot stocks, be very careful into next week and hedge your positions in case of things going against you. I am personally long biased looking for a pop higher into next week before we head much lower into February but that's just me.
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Also in regards of the pot stocks be very careful with TLRY lockup expiration on Tuesday. Insiders can finally sell their stake in the company and I'm sure if I was an employee or an insider I'd be looking to cash in on a nice bonus to start the year. Just fyi.
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Last but not least, I've never seen amzn consolidate so smoothly for a whole week. Something is definitely up. Just draw a trendline on the smaller time frames and you will see. Another index is the China A50, almost perfect ascending triangle into resistance that used to be support. Goodluck everyone have a great weekend.