6/13 Recap

The SPY continues to drift here and there isn’t really much to say when a name is above all the short term moving averages other than stay long.

Where you should worry is look at RSP, this is the equal weigh SPY it is barely holding the 50 day right now and could break below the 100 day quickly. Outside of Semis and Apple, this market is very weak right now.

Yesterday AVGO lifted all the semis again and as of now NVDA has accounted for over 33% of the market gains year to date. That is great, but is Nvidia going to carry us forever? Others have to start stepping up or we’re going to have issues, everyone is so crowded into just a handful of names right now, the unwind from that will be vicious.

Recent Trades

From yesterday’s recap, QRVO is up 3.5% right now. I even mentioned buying this one myself because it was so intriguing. I’m not going to play the Mark Minverini role and even pretend I know or care what they do. The trade really stood out to me because you have this $11B company, I have no other trades in my database and the chart was just reclaiming all its moving averages. That is a buy to me every time. That’s the thing with the market, the sooner you all accept the reality that the flow of money trumps whatever you think, the sooner you will improve your short term trading. Those $150 calls that were bought in size for $1.75 yesterday are $2.75 today for a 60% gain overnight. If you’re happy with the gain, sell, if not, hold, I personally like the risk reversal I noted yesterday because once the trade is placed for a credit you aren’t panicked about the day to day action because you paid nothing out of pocket.

Trends

1 Week

2 Week

1 Month

Today’s Unusual Options Activity

Here is today’s link to the database, as always it will expire tomorrow morning at the open and I will have the rest of today’s trades added by tonight.