7/19 Recap

Big day ahead with both Tesla and Netflix reporting after-hours, these should have a significant impact on the market. Tesla especially being one of the large components. We know margins will be terrible year over year, but, to this point it all seems “priced in”. We shall see what lies ahead as they guide to next quarter and explain more about the multiple price cuts this year and competition coming. TSLA is right around 21% of the XLY so if you’re long any of these names below, you’re pretty much long Tesla as a big move down would slam the XLY and these names. On a bright now Amazon is bucking the trend of /NQ down and is up 2% right now. Being an even bigger weight than TSLA in the XLY, Amazon longs are hoping the best for Tesla today.

AAPL just released their generative AI pump 30 minutes ago and the stock rocketed higher lifting the whole market with it. It’s pretty hard for markets to move lower when 20% of the market is Apple and Microsoft and they’re breaking out to new highs and giving repeated AI pumps. It feels odd seeing the largest companies in our markets give daily pumps on things that aren’t close to being a real material product like a penny stock would but that is where we are.

The SPY is putting in a very ugly candle right now but there is a lot of time left in the session. Again nothing really matters until we see what Tesla and Netflix have to say today. Netflix has alot of potential question marks too in regards to how will the Hollywood strike affect them? How is the password sharing blocking going?

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Today’s Unusual Options Activity & What Stood Out

106 Trades Today. Most interesting thing today was GRPN up 12% today, yesterday I noted that risk reversal and not even 24 hours later its off to the races. The timing of these trades recently is just epic. Even Monday’s recap I noted HOOD activity and that is up 5% today as well.