5/16 Recap.

Another day of nothing. These moves to me just reek of distribution, the entire market ex megacap tech is really sucking wind right now and everyone is just piling into the big tech names for the safety trade. That’s fine, but that isn’t a sign of a healthy market.

The MACD on the weekly continues to tick lower and it just feels like we’re going to have the SPY go down and only large tech stocks will go up. McCarthy and Biden meet today at 2 and it is highly unlikely they come to agreement on the debt ceiling which would likely cause the market to sell off once announced. We also have monthly OPEX this Friday and as I said yesterday max pain is at 405 on the SPY.

Another chart of interest to me is Exxon, XOM. This name is completely breaking down. This is your largest American oil name, and this name was the strongest around last year. All the moving averages are sloping down, there were large put buys in energy today that I will note below and while lower oil is great for the consumer, these large energy names are very broken at the moment.

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Today’s Unusual Options Activity & What Stood Out

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