Published with permission from the options flow and sweep specialists at Sanglucci.com.
Another quiet overnight found itself as the launchpad for the opening bell as buyers were lined up with Trump making more headlines. The SPY ground higher and higher throughout the session, catching some upside momentum with the President signing legislation to continue the DAPL project. Crude loved that. Ultimately, the SPY would print another fresh all time high and investors have unanimously decided that the end of the world is not coming to a market near them .
With earnings season finding itself drawing towards a close, at least for the names most people care about, smart money was willing to start tilting the scale again today. Action started in the Financials and ended in the small caps, but everything in between was fair game as regulatory repeal seems to have found the heart of this market.
It’s been some time since smart money gave us a glimpse under the hood, and with markets continuing to float around highs it was about time. And like a light from above, today the flow shined down on us.
The financials continue to hold much of the attention as regulations, taxes, and DAPL all gave them a boost. Today GS was the laggard with BAC, WFC, and DB keeping scanners busy throughout the session.
Today also marked a rotation into smaller names as unusual action was in abundance. With their lower stock prices, and liquidity, smart money had a field day accumulating small/mid caps as sweepers triggered flow scanners everywhere. IWM will be a must-watch for the next couple of weeks.
All in all, today was a much needed uptick in action and information. The reality is, sharks are betting again. And they’re betting that the Financials and smaller (America First) names are going to lead this market over the next few weeks.
Flow doesn’t lie. And today was about as bullish as we’ve seen this year. Surely tonight some headlines will drop in reference to another regulation getting axed, which will drive investors wild in the morning. But so far, in market terms Trump can do no wrong.
There is still a slowdown, and consolidation, expected once those Tax numbers finally get inked. But until then it seems like it’s smooth sailing.
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