2/6 Recap. Another Indecisive Day.

The market pulled back to a key spot and just consolidated. Late day, the dollar fell and equities rallied. Overall nothing out of the ordinary today, tomorrow we have Powell speaking, again, and who knows what he ends up saying. So keep that in mind, it isn’t an official event like FOMC but a speech at the Economic Club in Washington DC. For now, the market looks trapped in a range until CPI.

SPY

This may change by the close but I had to leave early today so for now it has this hideous indecisive candle but it did bounce right off the 8 ema so that is still showing a tad bit of strength, I wouldn’t look at a bear case until we see a few closes below some of these moving averages.

IWM

Same as the SPY but a little stronger, it did not even test the 8 ema today. Small caps remain the place to be in the meantime until this changes.

DXY

The dollar ripped higher today, I said over the weekend in my preview that this could be a headwind for the time being for equities if it continued and it did, equities fell in response. The dollar looks good, there is nothing to say about it, look at the averages starting to point up. I mentioned you could play this with UUP, but make no mistake stronger dollar = weaker stocks.

Oil

Oil continues to be broken, even with today’s bounce you can see all the moving averages are sloping down and it’s well below all of them. This could bounce but the likelihood of it being rejected is quite high. For me, oil looks headed to 65 or so before I’m interested in being involved with oil names.

Today’s Unusual Activity & What Stood Out

There’s always a new wave of people here so I want to explain this. The table below shows the unusual options flows that I scanned for today. The calls bought and puts sold are both bullish, the puts bought are bearish. The spreads bought are straight forward with a C or P as calls or puts letting you know if they were bullish or bearish. Today there were no risk reversals of note but those are max bullish or bearish trades that you should pay very close attention to when they’re put on. Anyways I try to put on around 100 unusual options trades in the table below daily, somedays there are more, others there are less, but more than enough information in there to give you direction in your discovery process.