10/19 Recap
Pretty ho-hum day. Oil Ripped after Biden spoke. Yields were up, Dollar was up, and nothing really bullish that I see on my end. Oil going higher isn’t going to help inflation at all in the times ahead. The SPY continues to trade in a tight range as you can see below, we are over the 8/10 EMA and holding it for now, but it seems like we’re going to be in a holding pattern until big tech reports as that is the bulk of the S&P top 10. We had Tesla report today, it wasn’t good, the stock is down 4% as I type this, but Tesla is a unique case where Elon will be on the call even though he previously said he wouldn’t. He needs to sell give or take another $10b in the next few days to finalize the Twitter transaction by the 28th of October. So I’m looking for him to give an incredible pump on the call to attempt to lift the price before he sells.
As we look across the ocean to China, their tech index was down 7% today. In one session, the Hang Seng was obilterated. Imagine the Nasdaq down 7% in 1 session and that’s what China bestowed upon us. It’s a horror show of covid zero policy in China right now and KWEB is down 80% from it’s highs last year, an index!
As we look at bonds, the TLT continues to get destroyed daily closing at another new low for the year. This is the worst year for bonds on record and the pain doesn’t seem close to a finish with the technicals completely mangled now.
Lastly the dollar was strong today, sending stocks to a red day, but still nothing close to reclaiming the recent highs. Just another day of nothing significant here.
Today’s Unusual Options Activity & What Stood Out
Going back to yesterday’s recap, those October 28th 260/270 call spreads on Netflix that were bought sure would have been nice to own today! Let’s look at today’s action
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