9/16 Recap, Bearish Engulfing Candles Galore

Ugly day, Fed Ex lit the match that triggered the sell off. You had this company that just raised its dividend over 50% a couple months back telling us that they’re in crisis control mode. How could this have happened in 1 quarter? Did everything crumble that quickly for everyone else? I don’t know but I do know the technical picture of the market got bad real quick.

Here is a weekly chart of the SPY, a nasty bearish engulfing candle, confirming a close below the uptrend from early June on a weekly candle isn’t exactly bullish. Most of the moving averages are above now and pointing down, this is not where you buy the dip.

The QQQ which is the Nasdaq, has the same pattern and I know some people think tech stocks have better fundamentals than most, and while they do, that won’t save you right now. Wait till you see all the massive tech puts BOUGHT down below in my unusual options table. Right now we’re in a sell everything mode and that’s why I’ve been trying my best to avoid equities…..except Twitter, which btw was flat this week.

Right now, as you can see the MACD on both the charts above is about to flip negative, these are just broken markets. I highly suggest selling covered calls if you’re at all worried about the short term, if you’re not, then don’t worry about it.

Today’s Unusual Options Activity & What Stood Out

Did you all see WIX after hours yesterday? Starboard disclosed a 9% stake and it exploded higher after hours. If you go back and look at my unusual options tables from weeks back, you will see all the WIX risk reversals I noted near daily. Here was my tweet about it in early August. So that highlights the value in my daily unusual options, you all need to take note of some of these and even if I don’t personally take the trades, it doesn’t mean there isn’t value in the data I’m posting. As you know I try to circle around just a handful of trades so I can’t take everything.

James Bulltard @amazonholder1

they are hammering $WIX risk reversals in january for the 3rd time in 4 days.