5/10 Recap

This is not what bulls wanted to see, a full reversal of the morning pump and a breakdown of the October trend. This is a very ugly move today. As you can see below, our 3rd break lower in 2 weeks. META saved us the first time, Apple saved us the second time, I just don’t know what will now. This really may be the break lower. Look we don’t have to crash, we can just be weak for a prolonged period, that’s fine. Earnings season is over, the data remains terrible and if the market is pricing in a fed pause, well it needs to start pricing in the recession that seemingly happens every time we uninvert. We have to see how today’s candle closes but this is not good. This is where you start to de-lever and I will tomorrow after a few of these ER reports today. Remember leverage is fine in uptrends, but when they break, you have to be smart about it, and dial it back.

Trends

I wanted to note that I added below for the first time all the put sales expiring next week, it’s hundreds of them so combine that with the trends here to look for levels to sell puts at into strength, it should help. As for this week, lots of put sales in ALB but I noted that the other day and more came in today. They keep selling them in the lithium leader. JD remains ones of the most bullish names over the last 2 months and they report tomorrow, the short interest isn’t even high on this name, wonder if we will see this divergence play out because it’s become huge with them and BABA.

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Today’s Unusual Options Activity & What Stood Out

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