Absence of Nuclear Armageddon leads to a possible bear trap

Futures are spiking higher this morning. And for good reason – the world isn’t engulfed in Nuclear War. North Korea tried to launch a test rocket, but that rocket blew up in its face before it could even get off the launch pad. Good for the bulls, not so great for the bears. 

But Friday, the market sold off due to the MOAB bomb dropped by the US in Afghanistan and traders freaked over the posturing/standoff it would create by North Korea for its “Day of the Class Idiot” celebration. At the end of the day, nothing scary enough came out of North Korea and now the market is ready to rally. 

Now if the algos can avoid the “drop bomb” headline today the market might actually make it through the afternoon for once and Ramp Capital LLC will do its job and rally the market into the close. 

With all that said, the market is in that oversold realm, and ready to bounce. Not an extreme oversold reading, but definitely ready for a dead cat bounce. 

S&P 500 Chart

Current Stock Trading Portfolio Balance: 

• 3  Long positions

Recent Stock Trade Notables:

• Las Vegas Sands (LVS): Long at 57.24, closed at 56.53 for a 1.2% loss.  
• UPRO: Long at 91.94, closed at 96.54 for a 5.0% profit.
• Alibaba Group (BABA): Long at 105.736, closed at 108.22 for a 2.4% profit. 
• Facebook (FB): Long at 134.27, Closed at 139.23 for a 3.7% profit. 
• CDW Corp (CDW): Long at 58.65, closed at 58.91 for a 2.7% loss. 
• Redhat (RHT): Long at 82.41, Closed at 83.53 for a 1.4% profit. 
• Ambarella (AMBA): Long at 57.15, Closed at 55.52 for a 2.8% loss. 
• Alibaba Group (BABA): Long at 104.73, closed at 106.05 for a 1.3% profit. 
• Broadcom (AVGO): Long at 218.63, Closed at 222.71 for a 1.9% profit. 
• American Airlines (AAL): Short at 44.76, Closed at 44.03 for a 1.6% profit.
• UPRO  (Day-Tade): Long at 95.35, closed at 96.50 for a 1.2% profit.
• OZRK: Long at $56.12, closed at $54.69 for a 2.5% loss. 
• FNSR: Long at $34.25, closed at 34.70 for a 1.3% profit. 
• UPRO  (Day-Tade): Long at 96.92, closed at 98.03 for a 1.2% profit. 
• JP Morgan Chase (JPM): Long at 87.21, closed at 89.67 for a 2.8% profit. 
• Chevron (CVX): Short at 110.03, covered at 111.85 for a 1.6% loss. 
• Flex Technologies (FLEX): Long at $15.62, closed at $16.57 for a 6.1% profit. 
• Baidu (BIDU): Long at $174.70, closed at $187.00 for a 7.0% profit. 
• Ollie’s Bargain Outlet: Long at 33.20, closed at $32.50 for a 2.1% loss. 
• Corning (GLW): Long at $26.98, closed at $27.45 for a 1.7% profit. 
• Illinois Tool Works (ITW): Long at $127.74, closed at $129.86 for a 1.7% profit. 
• Marriott Int’l (MAR): Long at $86.16, closed at $87.51 for a 1.6% profit.