9/26 Recap

CHINA! I mentioned this in the recap on tuesday, look at the move we saw today. The option flow and the charts were pointing in one direction, overwhelmingly. Every China name is just flying today, its hard to find one not up 10% at the moment. The move was violent and on nothing material, but that’s why fundamentals are meaningless to me. Look at PDD, it tanked on earnings a month ago, to $90, now its up almost 50% since because China is going to stimulate. Seriously, if you’re going to succeed at the market you have to accept the reality which is the flow of money and charts never lie. This move wasn’t really shocking as they were loading this stuff so hard this week. In the past few weeks I’ve written up BABA and EEM as weekend best ideas because of the immense flow, EEM is very reliant on China. This move was quite telegraphed by where money was positioning.

As for our markets, more of the same, just a slow meltup over the 8 ema, you notice how once we reclaimed the 21 ema(light blue line) we’ve just drifted straight up? This is what I discuss with you constantly regarding using the 21 ema as your market barometer. Markets really are as simple as press things over the 21 ema and close up things below it, but of course with taxes being a thing, that isn’t really a realistic option for most of us in terms of just closing up longs when we know the market is going to be weak for a little.

Recent Trades

WYNN - Up 7.6% right now. You all know I took a big stake 2 days back, I also sold short calls at 90 for next week which was a very bad move, but I couldn’t have guessed WYNN would just rip like this on nothing, but that’s how these Chinese names move. I closed up the short and long legs of my trade today for a big profit, less than I would have made had WYNN waited a couple more days but first world problems over, my stock moved faster than I would have liked. In the end I think WYNN is a great company, still very cheap, still goes much higher, but I don’t like charts with this many huge gaps below. If you want to get back in sell put at the gap fills and see what comes your way, this massive move and it’s not even touching the 200 day yet, shows you oversold it was. Congrats if you made money, as you know I don’t take trades often the last two, this and MSFT both ramped 10% very quickly, I try to stick really strong setups before I say I took a trade for a short swing. Back to my book of AMZN and Apple leaps with some cash for now.

Today’s Unusual Options Flow

Here is today’s link to the database, it will be open until tomorrow morning. The rest of today’s trades will be added by the afternoon. So check back for updated trades and trends.