10/25 Recap

We tested the 21 ema two days in a row and bounced up over the 8 ema on the SPY. While this is encouraging for now, we need to see how the weekly candle closes because right now it is not looking great, but we still have 4 hours left today. Overall we’re heading into the biggest earnings week of the year next week with most of the megacaps reporting and the market near highs with the election just 6 sessions away. If ever there was a time to lighten up, this is it, the market is up 25% this year, you’ve probably done very well and if you want to take 2 weeks off, skip the big earnings week and come back post election, nobody would fault you. I still see a massive bearish divergence forming in the SPY, will it play out? I think so, I think it will be after the big names report and we get election results if I had to guess.

Recent Trades

VLTO - I noted the put buying on VLTO 2 days ago here and the name has dipped over 5% since and those November 105 puts have more than double from .94 to 2 right now as the name just broke 105.

If you took it and you’re still in this, you can see the massive bearish engulfing candle yesterday and the followthrough today breaking below the 100 day. This looks like a nice short now with room below to 98 and the 200 day if the bearishness continues.

Today’s Unusual Options Activity

Here is today’s link to the database, it will be up until the open monday morning. Check back this evening for the rest of today’s trades and trends.