Today’s Trading Recap

Option Recap – Tuesday – 6/2/15

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Today's trading session eerily resembled yesterdays.  Stocks started the day lower, rallied until mid-day and gave back 50% of that intra-day rally into the close.  As JB aptly put it in his wonderful $YELP piece today,  it was like Deja Vu all over again for the market.

If you missed yesterdays Option Recap you missed the unusual $LLY activity right near the close.  Those options rallied over 100% after today's open as $LLY literally fell out of bed.

That $INTC trade I'm sticking in is beginning to hit paydirt.   What else was going on today?   I've got a lot more to share today than I did yesterday..... if that can be considered an answer.

Let's get into it.  I am looking to piggyback a smaller trade

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Daily Recap

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Looking back at today, the one thing that would stand out is the breakout in the SPY along with a meaningful decline in VXX. Both of these signs say that the market will probably have a small low volume rally for the coming days. I do not expect a run-away move because the volume is very low. I would have a bullish bias until I see a topping candle. This could be a doji reversal or a bearish engulfing candle. Either one of these signs will tell me the market is going to breakdown. I think that the opportunity lies in individual names rather then playing SPY.

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A Trek – Yes That’s The Title – A Trek

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Another trading session, another record close.  This time yesterday I had just put the ribbon on a fabulous article about how the bond market was going to cause a massive correction in stocks.  To be fair the Klingon Stock Exchange in Gamma Quadrant 3 doesn't close for another two hours... so there still is a chance....

All kidding aside, it is amazing what a 1%+ rally for the stock market can do.  Bonds?  What bonds?  Like the parabolic move of the US Dollar and the crash of Crude oil, once stabilization occurs everyone forgets about it.  Today the bond market stabilized.  The pontoons were deployed and the stock market responded with a strong rally.

As I so brilliantly alluded to last night the market is on the cusp, the brink, the precipice, the beginning, the start, the dawning, the kickoff, the embarkation, the inception of a price breakout.

Here is last nights chart:

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Thursday Recap

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After yesterday's sharp sell-off stocks stabilized today and rallied to close near session highs.  2015 has been a 'spin your tires in the mud' affair.  Would it be any more appropriate if tomorrow's jobs reports sparks a rally back to Monday's levels?

Bonds remain a volatile trade with $TLT dropping to its lowest level of the year before mounting a furious recovery rally.  The 20 year bond etf now sits right at long term support.  Tomorrow's jobs report is likely to push it one way or the other into the summer.

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Thursday Recap

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After one of the more tumultuous sessions of 2015, stocks ended the day sharply lower.

Early on it looked like today's action would mirror Tuesdays, but that notion was quickly put to rest as the market fell under Tuesdays lows.  You would think the best initial claims data in 15 years would put a bid under the market, but instead it helped to spook it.

Unusual Option Action and Bull Bear Scans are In The Forum

My thoughts on the S&P 500 futures, $QQQ, $IWM, $IBB currently:

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