8/23 Recap

We got Jackson Hole out of the way today, Powell spoke and I will be honest, I did not even waste 2 seconds listening to it so I couldn’t even tell you much about what he said. Whatever he had to say was of no importance to me, the price action was all that I care about and the price action was not too inspiring today. We’ve sold off quite a bit since the day began, here is the intraday action on the SPY.

Overall this looks like a giant non event, you can see we’re still sitting over the 8 ema right now so short term uptrend is still intact. The fact we sat over the 21 ema all week was telling me that buyers were not really too fearful of what was coming. More concerning to me is the fact that if we don’t move higher soon we could be forming a lower high from those July highs. So bulls want to push higher and make new highs soon otherwise we could be targeting that gap below from last week. For the moment though, caution is warranted as the price action wasn’t good, but the charts are showing us still firmly in an uptrend.

Recent Trades

WDAY - yesterday I noted 2 earnings trades, BILL and WDAY, BILL was a failure, but the WDAY trade was way riskier because the player sold $20 in the money puts. I even mentioned the level of conviction that player had, sure enough WDAY reported and the stock initially tanked down to 219 but then they guided up on the call and the stock is $257.60 right now. You have to think this person knew that was coming beforehand because you don’t just sell 250 puts on a $250 stock $20 in the money into earnings unless you think there is some serious upside. You can see the massive volume yesterday selling those puts for near $25 and today they are $9 for a huge $16 gain per contract.

Trends

Interesting to note, 3 of the top 4 names on the short term trends are China names, could be a rotation brewing.

1 Week

2 Week

1 Month

Today’s Unusual Options Activity

Here is today’s link to the database it will be open until monday and the rest of today’s trades will be added by this evening so check back there later.