8/2 Recap. A Short Term Top Is Near.

This rally has been incredible, in 15 sessions, the QQQ has gone from 280 to 315. Nothing seemingly can slow this market down suddenly. China threatening war, mediocre earnings, even rate hikes, stocks must go up. While everyone is focused on the seemingly unstoppable market, I would like to point out that last night, 3 month and the 10 year inverted, briefly. While the media likes to cite the 2yr and the 10 yr inversion as the warning sign, I learned early in my career that it was indeed the 3 mo/10 yr that mattered, lets take a look.

As you can see what I circled, every time that occurs, it precedes a recession, so this is your warning sign to begin lightening up, right as everyone on TV seems to be telling everyone that the worst is over. Would be pretty fitting.

Today’s Unusual Options Activity & What Stood Out