Published with permission from the options flow and sweep specialists at Sanglucci.com.
While the overnight was relatively quiet, pent up action came with Premarket trading today as buyers pressed the SPY into another fresh all time high. But with the action taking place before the ringing of the opening bell, we’ve got to ask. Does it count, or is it all for show?
With the SPY failing to string together anything more than a “soft” day, profit-taking dominated as smart money found themselves staring down some more green. If 2016 has taught them anything it’s to book profits early and often. And in between rotate into something fresh.
And that’s where we’re at for now. Waiting on sharks to figure out what names will hold the momentum for whatever “next leg” is to come. Or, perhaps at long last flow will rotate into protective positions and we’ll get another strong selloff. Regardless, in the chess game that is these markets, it’s smart money’s move.
We mentioned profits earlier, and earnings season has done its job in helping that cause this go around. Typically full of dull and boring reports, lowered expectations and shock beats have proven enough to keep investors attentive despite the shifting landscape that is Trump’s macro policy.
Today, AAPL saw early call flow rip through scanners only to sputter out and fall back in line with the rest of the market. Longer term strikes continue to show bullish bets, but everything is heavily dependent on SPY momentum. And NFLX is no different.
While NFLX saw more profit-taking today than its tech cousins, sharks had positioned themselves last week for the profit booking seen today. GLD took a breather, and a small step back.
All in all, we’re still stuck in mud as things grind back and fourth. Short term action has been in abundance as day traders make a killing trading the ranges. But we’re still not seeing any indication of a momentum based move to come. Nothing that’s going to pay out option premium. Dead.
It seems like for the first time since Trump has taken office, things have finally slowed down and headlines have come to a dribble. But that’s likely going to be short lived as some major news still stands to come.
Dodd Frank. Volcker Rule. Tax Plan. Obamacare. The list is long, it’s interesting, and it’s likely to bring a hell of a lot of volatility to markets again.
And that’s what everyone is waiting on. Trading the back and forth while watching for Trump out of the corner of their eye. Stay patient.
eOption is neither affiliated with, sponsored by, nor endorses the above commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.