9/28 Recap. England Pivots & Bulls Rejoice

Before I get into today’s report, how about Twitter? The judge laughed at Elon Musk yesterday in court. He hired a team of data scientists to prove his bot theory and their findings came inline wiht what Twitter had shown and it was off to the races today. I cannot believe there is still a near 30% spread here, this deal is done. Elon would be smart to pay $54.20 right now before the judge tacks on PJI and he pays interest on top. As you know I have been extremely long Twitter shares, short put spreads and more. For those who followed, I know you had a great day because I was up near 6% today. One of my best days of the year. I will go over the figures at the end.

Ok to the markets

QE is coming back! I can’t even believe people are excited about what happened this morning. The UK is in complete panic mode, they have 10% inflation yet were feeling so much pressure that they had to run back to QE. This is where politicians go into panic mode and make moves they shouldn’t. There was absolutely no reason to go back to QE but alas they did it and people decided to ignore the warning from America’s largest company about sales of their top product disappointing and instead decided today that if England pivots, eventually we will too.

That’s a thesis? While I have said on Twitter that eventually I do feel Biden would have to get political with the FED like Trump did because it would hurt his popularity, the FED really can’t pivot here or it loses all credibility or whatever is left of what they have. I expect the next week to hear many FED speakers tell us that we are not England and there will be no pivot. From a technical standpoint, this huge rally we had today couldn’t even retake the 8 EMA, have a look below. So to say it was insignificant at best is an understatement.

If you remember yesterday’s post where I sad the dollar had short term topped out looking back at a channel going back over a decade, you can see that today the dollar did indeed have a $2+ intraday reversal. The weak dollar is why stocks are up, but almost as if we are living in a Matrix, the dollar foretold the cut from the Bank of England yesterday by tapping the top of the channel. It’s amazing how technicals function.

Today’s Unusual Options Activity & What Stood Out