12/18 Recap

Big day today with the fed rate decision expected here soon. The market always gets erratic into and after these events. We have to digest what Powell says but you can see the bearish divergence forming below. At this moment, we’re fine right over the 21 ema, but a 1% move down and we break that 21 ema and then you have a bearish trend for a while. So it’s hard to say where we go until we see how the market reacts to Powell. If short term matters to you, I’d say there is no need to risk anything here, this has been a phenomenal year, if you’re in longer term positions, then don’t even worry what happens today. 601.44 is the 21 ema on the SPY keep that level in mind and if things go wrong this afternoon and we close below there, make sure you lighten up on your positions. Keep it simple and don’t try to be a hero if that uptrend breaks. Otherwise if we go up stay the course as we would remain in the post election uptrend. Overall things are starting to slowdown today it is December 18 and a lot of people have already called it a year so you’ll see less trades in my table below.

Recent Trades

BA - We discussed this one over the weekend here as a best idea, it finally broke out over the 200 day and now looks set to run. It’s up over 5% in 2.5 sessions this week, for a name like this, that is a big move. If you grabbed shares Monday morning and sold those weekly 180 calls you’re looking good and might get called away for a nice $10 swing in a few sessions. Those max strike 2027 calls went from 17 to 20.50 right now a quick 20% move in 3 days.

Today’s Unusual Options Activity

Here is today’s link to the database, it will be open until the opening bell and the rest of the day’s action aded by this evening.