10/2 Recap

The SPY opened below the 8 ema today, first time we’ve done that in a while, this market is losing momentum. Look at the RSI it is going to likely flip negative tomorrow barring some huge move up overnight. We bounced at the 21 ema and continue to hold the recent breakout(white line) but this is not looking good. Look at our market leaders, MSFT has been nothing short of awful for months and its chart looks terrible as it nears losing the 200 day, that is 7% of the market by itself.

The megacaps in general are all struggling and money is rotating out of this and going heavily into China, for the time being. China was up another 5% today, the last 10 days or so China has been absolutely on fire and the trade. We have alot going on right now, who knows what is going to happen with Israel and Iran. We have election uncertainty, earnings season starts in 2 weeks. People hate question marks and we always have them, just now there are more than usual. As long as we don’t lose that 21 ema it is ok to stay long, if we lose that, and it lines up with the breakout now, then it is time to dial back longs and leverage, short term. Keep your eye on that line. Another major headwind is the DXY below as the dollar turns up in strength it will continue to put pressure on equities.

Recent Trades

CZR - I wrote this up as a weekend best idea back on 8/24 here it was 38.xx at the time and today it is up 7% to 43.63 on aggressive buyback news. I noted all that call flow at the time and drew up a couple trade, the most aggressive one, below used a ratio to sell 2 puts at 30 to buy 1 call at 45 for no cost, those calls at 45 are 3.90 today and the puts at 30 are down 90%. This was a good example of how to use uneven trades to shit a trade to no cost or a credit to help you achieve the same objective with less out of pocket expense.

Today’s Unusual Options Activity

Here is today’s link to the database, it will be open until tomorrow morning, the rest of today’s trades and trends will be updated by the afternoon. New month so, if you’re in the live part, I posted a new link for you under the pin in the “live discussion” tab that link is open 24/7.