7/11 Recap

Interesting session, once again we were lead by all the junk names I noted were ripping yesterday. Pick a name out of a hat and it was probably up over 5% today if it was a small cap tech name. I don’t know what to make of this, ARKK actually looks good again, but these names are so low quality. This whole move has been lead by stuff like Caravana, Peloton,Roku,Redfin,etc unreal. In the land of real stocks, mega caps continue to be a mixed bag. This tweet sums up the day

In the big 7 Microsoft had their Activision deal finally approved and the stock is red along with Apple and Tesla. Those 3 were actually the strongest after Nvidia after the last quarter, surprising to see them lagging. Oil continues its breakout and yesterday's adjustments within the Nasdaq selling some of the leaders to add more of the rest is probably going to help improve breadth going forward.

The indestructible SPY is back over the 8 ema for now and back in a position of strength. Every time we dip below it, in a 1-2 sessions we’re back over it. I don’t know what to say other than this may feel like a blowoff top but for me personally I don’t try to guess the tops, I just wait for confirmation and until we break that trendline below I will remain bullish.

The TNX below continues to pullback, bulls would like to see it break below all those moving averages while bears would like to see it slingshot off of them. Looks like the next couple days will be a big day in that regard.

Trends

Look at the top trending names this past week. It’s a collection of junk and not shockingly that is what has been ripping. CVE and FCX I’ve noted for a while had a very nice move up today in the world of real companies. MGM as well as casinos all look very good right now. I have to admit it doesn’t inspire much confidence to see all these second rate tickers like PLTR,HOOD,AI,XPEV leading the charge of call buying but that’s where we are.

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Today’s Unusual Options Activity & What Stood Out

113 Trades Today.

The most interesting one to me today was that huge ATVI call spread bought Friday that I noted 10,000x. The deal was approved today and that trade expiring Friday was a very big winner.

Another big winner from Friday’s recap was DDOG after that huge 6000x risk reversal was put on, the stock is up 6% in 2 sessions since.