Markets took a dump during sour hour yesterday. The weak-minded and fearful jumped ship as shorts took the charge. Pathetic really, sell into red and buy into green is a sure way to bankrupt your account, but again that is your decision to make.
Today the automatic money creation systems were locked and loaded to the tits. Market open was one of the greenest greens you’ve ever seen, but sure enough the VIX which was melting away so steadily has risen into positive territory.
I’ve mentioned this before, we are now living in a bizarro world where nothing makes sense, but as I continue to believe, it doesn’t really need to. I would have thought by now volatility would have somewhat subsided. They way it’s been increasing the last several sessions has me thinking the market knows something we don’t. I’ll be going predominantly cash as we get closer to the weekend. Swaggy is always light on his feet.
I entered a small TWTR position this morning off some unusual options activity I spotted in short-term calls. I will be looking to sell at a small gain by the end of the day or tomorrow. Other than that my momentum plays I will continue to hold for the short-term are PTON and WMT (Walmart). I like AMD at these levels as the rest of SEMIS industry has mooned recently, but the stock has been acting like a wounded horse that’s soon to be turned into a glue stick.
Bullish sentiment in option flow has been outweighing bearish flow, players aren’t looking for downside or protecting positions just yet. Let’s see where this goes.
Don’t forget jobless claims tomorrow at 8:30am.