5/12/26 Recap

The SPY is having an ugly session but look below, we’re not even at the 8 ema yet. That is just how hot this market has been where the nasdaq can pull back 400+ points and we’re still not even at short term support levels. Right here we need to see the market hold the 8 ema if we’re going in for a test and bounce, but we are still looking fine, we could fall all the way down to the 21 ema at 715.43 and things would be fine. Once we lose that 8 day for the first, if we do, that is your first sign to start taking some things off. That level is at 730.09 right now so watch it into the close today. Money is exiting all those junk growth names that have been ripping nonstop, the inflation numbers today were suboptimal and now we’re having rate hike fears but I don’t think anything will come of it because Trump has been clamoring for rate cuts for years and now he finally has his hand chosen fed leader in place.

Look at yesterday’s recap as an example of how powerful this flow is. SONY had that weird call buy I flagged yesterday and at one point today those calls were up over 80% in this weak tape but something like INSM. That trade was incredible, this player throws on a risk reversal and it instantly pops 7.5% the next day. Just remember you don’t have to play options on these things, you can even swing commons, it doesn’t really matter its just about being in the right names at the right times and its uncanny how these players place these risk reversals at the perfect time!

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