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Mean Reversion Shock - Free 1 Hour Market Video

The Freight Train is Slowing

After a solid session was put in on Thursday, the market gave it up on an abysmal jobs number.

But one down day does not a trend change make.

We've seen a unexpected move in equities as indexes like $QQQ and $IWM are retesting their 52 week highs. The violence of the move left many overprotected or underinvested.

So the psychology we're seeing here is a handful of painful shorts coupled with many looking for a dip to buy to get back into their names.

This is on top of a $SPY options term structure that tells us traders are overprotecting in Sep and Oct options.

Those 2 psychological conditions pretty much sums up the second half of 2010, so should we expect a rally from here? Watch the video to find out.

In this episode of Stocktwits Brunch, we discuss:

  • why the $VIX is not giving us all the information in the options market
  • how the $FXE options are a great tell for the Eurozone Voodoo
  • a simple technical price target for $AAPL
  • what stock is a great pairs trade against a short $OIH setup
  • why I'm seeing $VRX in my dreams
  • how the China momentum names like $SINA $SOHU $DANG and other have momo left
  • your individual requests
To watch the show, click on the video below.

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by Steven Place

Steven Place is the founder and head trader at investingwithoptions.com/