S2 Option Trader

[SyndicateTwo]

First off, read this...

http://www.cnbc.com/id/40416734/


Now with that in mind, the reason stocks like NFLX are doing what they're doing is precisely because of what that guy is saying. All of these computer traders are basically screwing the market. It's scared probably 80% of the public out of the market, thus the low volume, and has created these setups where the market magically runs when it is breaking down, and then falls dramatically when it should be running. Like that guys says, the market's a sucker's bet and is rigged.

But that doesn't mean you have to stay away. No no no. It just means you have to be extremely careful. So, if the market is trading via the waves, then we are in a final leg setup and a 4th wave pullback probably somewhere around DOW 10,750+ as a bottom and SPX 1150ish. It shouldn't go lower than the Aug peak, which I'm counting as the wave 1 high.

We then get the final leg 5th wave by month end leading into week 1 of Jan, and then the market begins to get crushed next year in a dramatic selloff from sometime around April-ish as a high. So an ABC from the Jan-Feb peak down, then another 'flat' into April and then BAMM.

That's the setup. What I want going into year end is a selloff here to those numbers above, probably QQQQ $50 ish and then go long big the Q's Feb calls for $51. Should be around $1 or less. That could be a biggy because the 5th should take the Q's between $55 and $57.