CPI came in a little cooler than expected and the market enjoyed the news. We still have alot left this week with FOMC and Powell speaking tomorrow, so we aren’t out of the woods yet. From a technical standpoint, we’re breaking out. You can see the flag we were in last week and the break higher, what you will notice is we’re finally officially overbought on the RSI. It can stay overbought for sometime, but I’d expect it to cool off sooner than later at this point. We’ve had a fantastic run, no shame in all the money we’ve made in such a short period, but I definitely recommend exercising extreme caution here, markets don’t typically stay overbought for long.
Small caps look back to leading with the IWM making a powerful move the last 10 days as you can see in the chart below. While it’s run hard, it’s still not overbought like the SPY. Oil had a small bounce today but is still lagging below 70 and the dollar is falling off to 103. Other than being overbought short term, the market continues to want higher despite mostly mediocre to bad data
Trends
CCL remains atop the list today and is up another 3% as I type this. It saw some shocking call buys for months out that you can see below in today’s table. It may still be gearing up. All those ORCL trades I noted yesterday worked for a bit if you sold early on, the name has fade $4 off highs today after a surprisingly good report yesterday. Yesterday I noted that massive call spread bought in CHPT I believe it was 40,000 contracts expiring next week on a 9/10 spread and it reversed very hard today up 10% as of now. There isn’t much to note on the bearish side. Even today was the least amount of puts bought in unusual size I’ve noted. It’s like the bears have given up trying to short anything at this point.
Week To Date
2 Week
1 Month
Today’s Unusual Options Flow & What Stood Out
106 Trades Today
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