9/13 Recap

We will see where today’s candle closes but we’re now on day 3 of this uptrend and the market is doing what it does in these uptrends, it is drifting higher. It’s just a timing thing with markets and you have to understand when we’re back in uptrends over the 21 ema, that is when you can press things, use leverage, etc and you feel like superman because every call you buy or put you sell works. That is why the opposite happens below the 21 ema and you feel helpless, the reality is you never really need to put on positions until we’re in uptrends unless it is longer term positions you seek to be in. With the 8 ema sloping up, and earnings season a month out, it seems like we could be in for a nice run here. As long as we remain above the moving averages, this remains buy all dips time. The sheer number of names hitting new 52 week highs today being in the hundreds is a sign that for the moment, recession fears are off the table.

Recent Trades

UAL - In yesterday’s recap I noted all the UAL call buys that came in,

then late in the afternoon they tweeted that a big surprise was coming today

and this morning they announced that starlink was coming to their fleet and the stock zoomed up 3% over 51 and those October 60 calls that were .33 yesterday were up over .50 for a 50% gain overnight. Did those players know that announcement was coming today? I want to say yes just because they got aggressive with the 20% OTM call buys hours before this reveal. Whatever it was, they were right and this is the type of stuff I’m trying to find in these deeper looks at why people place these trades.

Today’s Unusual Options Flow

Here is today’s link to the database, it will be open until monday morning at the open. The rest of today’s action and all the updated trends can be found there. You will notice the lack of puts bought today, that is telling me alot about how people are thinking about where we are now. If you remember the caution the other day before CPI, now its all skewed to call buys and lack of put buys.