1/19 Recap, What A Reversal

We opened with a pretty large gap down that trended lower all morning until the mid day buy program kicked in and we rallied hard and then flushed even harder into the close with the /ES down 30 to end the day. All that commotion and the MACD is still rolling over on the daily chart, the RSI is still pointing lower and this looks like a pretty ugly setup for bulls, hence why I noted yesterday the large short position I was adding. We close in the mid range of today’s candle in a cluster of moving averages. We’re up a little after hours with Netflix now up 10% on the news of a new CEO replacing Reed Hastings.

Earnings season in terms of sectors that really drive the market kick off today with Netflix and next week you can start to see how the big players guide. I am in the camp that we are going to see some pretty stark warnings coming out. Satya Nadella has already said the next 2 years will be rough for tech, Jeff Bezos told people to lay off big purchases for a while, and I don’t see how either of their companies, Microsoft and Amazon, guide well with that sort of pessimism coming from the leader.

Oil continues to rally, clawing back some early losses this year and this will continue to put pressure on our inflation numbers going forward, so keep that in mind when everyone says inflation is dead and over. A move to $100 oil will destroy that narrative pretty quickly.

Today’s Unusual Options Activity & What Stood Out