TradeWithAdam

TradeWithAdam Updated 

Now that we've seen strong buying come in near support levels, we no longer have to guess where we might find bottoms. Given that we just rallied 116 S&P handles in a single day, I would not be surprised to see the bears have control at some point tomorrow (the 27th). Where is it safe to be long? The chart above shows how we may be able to find support in the...

TradeWithAdam

From a standpoint of market panic, we are likely nearing a point of capitulation. In 14 sessions we have declined 450 S&P points and non-financial news outlets are heavily reporting on the losses -- frequently saying that the declines will continue and that there is 'no good news in sight.' Anecdotally, I've been hearing passive, average investors contemplate...

TradeWithAdam

After breaching the $1T market cap threshold, being bulled relentlessly by Warren Buffet and appearing nearly invincible to any market sell-off over the past year, AAPL has very quickly seemed to lose the wind in its sails. Such is the case for momentum stocks when bear markets take over. Seemingly overnight, AAPL has gone from a growth AND value play to a...

TradeWithAdam Updated 

It's Fed Day during a bear market and that means only one thing: volatility. Bull market Fed decisions are frequently boring with only small whipsaws, but bear markets tend to exacerbate those whipsaws by many orders of magnitude. I believe Wednesday's Fed decision and subsequent press conference will see huge moves in both directions. What will happen? It's...

TradeWithAdam Updated 

Oil has taken a huge plunge in the past few months and a recent OPEC meeting failed to prop up prices despite a slightly greater-than-expected production cut. Despite many traders trying to be long (including myself), gains have been very short lived as oil seems reluctant to rally or sell off. While oil and equities don't usually have much to do with each...

TradeWithAdam Updated 

A clear disparity has emerged between the level of the VIX at the beginning of the year and the level of the VIX currently. The VIX tends to be a great indicator of fear and capitulation (capitulation usually marking long-term or interim bottoms) and it seems to be clear that there is currently more complacency than panic at the moment. Typically a rising VIX...

TradeWithAdam Updated 

PG&E is under massive headline pressure these days after being blamed for the recent California wildfires. The stock went down 60% recently and has rallied 50% off of its low of $17.26. On Friday after the close, new headlines came out suggesting that PCG falsified gas pipeline safety records for years. Bankruptcy is definitely in the cards. When stocks become...

TradeWithAdam Updated 

Traders are feeling great after the rebound from yesterday but it has bear market markings all over it. Charts throughout the market look awful, the VIX hasn't spiked, uncertainty remains, new lows have not spiked and we haven't even tested the lows of February yet. Short @ 2707-2715 with a stop at 2722!

TradeWithAdam Updated 

Support @ 2735 Long @ 2737 Stop 2728 Target 2760 For a quick intraday bounce, let's get long SPX here

TradeWithAdam Updated 

Thanks to the US-China trade war cease-fire, traders are set to panic back into stocks on Monday. There is strong resistance in the futures at the 2818 level. It's likely that this level will serve as resistance on the first attempt to break it. It is, however, very likely that it is eventually broken. Short ESZ8 (December E-mini S&P Futures Contract) @...

TradeWithAdam Updated 

For the first time in a long time crude oil is showing some strength. Beyond coming down to the psychological '50' level, crude oil is facing an OPEC meeting next week on Thursday. There is good reason to believe that output will be slowed and traders will likely position themselves ahead of that. You never want to catch a falling knife unless you have good...

TradeWithAdam Updated 

The S&P 500 has rallied handsomely off the lows of 2631. In 3 sessions it has recouped 112 points! Bear markets (which I believe we are in given the chart damage on so many stocks) tend to swing to extremes very quickly but ultimately resolve lower. I believe we are setup to run into and be rejected by overhead resistance at SPX 2750. The market rallied hard...