Financials See Options Market Turn Bearish for the Holidays
Financials Unusual Option Activity Report In October, the trend in option activity in financials was decidedly bullish. On Oct 23, I posted on an unusual option trade that was made on the SPDR S&P Regional Banking ETF (NYSEARCA: KRE). Since that post, KRE has moved over 18% higher. However, that bullish tide may be receding…
Will the Bears Make a Year End Appearance?
Change of tone in the markets ???--COST & LULU--Financials came off with energy--still playing the shell game--Brexit, jobless Volatility Expansion--/VX, VIX & VVIX--weekly expected moves IPO's have gone plaid----ABNB & DASH Don's Positions and Delta Risk SPX Expected Move--last week-- 64.56 (expected move)--next week-- 85.99
Plug Power Inc: A Quick Look Under the Hood
Since its March 2020 low, Plug Power has risen around 1000%. That amount of movement is profound and places new investors on the outside wondering, where is it going from here? This will typically leave the optimists with rose-colored glasses chomping at the bit to enter the fray. They’ve likely been reading about hydrogen fuel…
Fund Managers Have Never Been More Bullish
Another Rally For Tech & Small Caps The usual foes, which are small caps and large cap tech, joined together to rally on Thursday in spite of the weak jobless claims report and stalled stimulus talks. The good news was the FDA took a step towards approving Pfizer’s vaccine. At this point, if the FDA…
Jobless Claims Spiked
Jobless Claims Spike Recent estimates only called for a modest increase in initial claims. I said that was wrong. The economy is weakening. The decline in the prior week was because of Thanksgiving. It’s impossible for the labor market not to slow when states are adding restrictions. The deaths per day are at a record…
LULU's Earnings and Key Market Level Update for You
LULU reported earnings after the bell and ... price went flat - initially. Join Corey in tonight's video update as he highlights the "LULU Levels" in play but also key focal and pivot price points in broad markets such as US Equity Futures, Gold, Crude Oil, and even the US Dollar. Inflation still creeping up? …
Nasdaq 100 Winning Streak Ends - It’s Still A Bubble
Stocks Finally Fall The stock market finally fell as the large cap growth stocks led the market lower on Wednesday. The headlines said the market fell because the stimulus talks hit a snag. That’s probably wrong because usually value stocks fall on that news not growth stocks. The 10 year bond yield wants a stimulus…
Fed Sees Downside Risks
Trouble For Congress Did anyone think it would be that easy for the government to pass a stimulus? The Republican proposal is $8 billion more than the bipartisan agreement. Plus, it got rid of liability protection, but that wasn’t enough for the Dems because the GOP got rid of the part of the plan which…
Better Watch Out, Better not Cry…the Vomma Zone is Here
One the indicators that we look at closely at TheoTrade is when the VVIX crosses over into the “Vomma Zone.” Now, you’ve probably never heard of the Vomma Zone and you may not have heard of the VVIX. However, this is a key indication of potential volatility in the S&P 500 around the corner. This…
Bond ETFs Give Big Heads Up of Downside Potential
Bond ETF Unusual Option Activity Report As market makers were deliberating what price to open DoorDash Inc (NYSE: DASH) this morning, the bond market was giving a much different signal. Bond ETFs were seeing significant bearish option interest across corporate and U.S. Treasuries. The exuberance for IPOs has been nothing short of historic and the…