Interesting session where we opened with the /NQ up 100 points and then almost instantly reversed to red. Commodities were destroyed today, oil and natural gas are both down 4.5% as I type this up. Oil finally broke below 70 and sits at 69.20 right now, an almost 15% move lower in 5 sessions.
Natural gas broke to new lows at 2.559
The IWM led the way again today, small caps have suddenly turned into our beacon of strength in markets the last few weeks as money has flown out of megacaps after their huge run. The outperformance today was slight but it remains notably stronger than large cap tech as the SPY continues its 3 weeks of sideways and megacaps can’t catch a bid.
Here is the IWM
Here is the SPY which still hasn’t not broken below the 8 ema. Whatever comes next is going to be a big move because you do not coil up like this for 10 sessions in a row to follow up with a muted reaction.
Yields fell over 1% again today as we creep closer to our moving average on TNX at 40. Again just like yesterday, the market is not having a positive reaction to falling yields, this has to start being a concern soon. The market is sending warning signals.
Recent Trades
S reported yesterday and is up 18% today, I highlighted that one just 2 recaps back on monday because a couple big trades came in right before earnings. The move to $23 today was a really nice continuation on the chart.
KOLD again ripped higher, up 11.5% right now today, that trade last week was so odd because the player was looking for a 50% move in such a short timeframe of just 1 week. Nonetheless, the equity was $80 when I posted that recap and today it sits at $96+ as I type this. Who knows the 115 calls could work by Friday, but not often you can hit a 20% move on a 3x ETF in a week. This player was very right on direction. Impressive move on their part.
Trends
1 Week
2 Week
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