11/14 Recap

CPI came in cool and we took off. The /NQ was up 300+ points, the IWM was up 5% at one point, and even the RSP outperformed the SPY for once meaning the breadth was finally good today. This was not a large cap tech only rally as it has been all year.

The SPY created a huge gap this morning and now in a span of 3 weeks has gone from max oversold to nearly max overbought. Really impressive 10% move in the market.

The IWM if you look back at yesterday’s recap where I drew that inverse head and shoulders on the daily chart just ripped off an incredible move today. As silly as it is, that’s how this stuff works, small caps are just inverse yields and yields plunged today.

Speaking of yields plunging here is the TNX. Ever since yields broke below the 8 day, just like equities, that was your sign that weakness was coming. The move down has been vicious and now the TNX is trying to find a bottom, the next support is 43.xx. The dollar also collapsed with yields and that is what is fueling this run today.

Trends

Look at the TLT and how massive this move has been, other than Amazon which I will discuss at the end of the recap, the TLT has been the most accumulated name in the past month and this move down in yields today really should not shock you. Overall most of the top trending names of the past month really made powerful moves in this rally even the smaller names like PLTR and EDR had impressive months while the IWM mostly lagged.

1 Week

2 Week

1 Month

Today’s Unusual Options Flow