After clinging to support last week into Monthly options expiration, broke through it in the overnight hours to start this week. This morning the downside action has resumed in earnest on the heels of the FED's rate hike, and more 'trade war' talk.
U.S. EXPECTED TO ANNOUNCE IT WILL SUE CHINA AT WTO FOR TRADE LAW VIOLATIONS - WALL STREET JOURNAL
The VIX dropped 25% yesterday. It was a nasty reversal, usually something we are accustomed to seeing right after a VIX spike. Oddly enough the VIX was performing out of the ordinary the last few weeks. The gains were holding. You could even make a case that the 'fear index' was consolidating!
Earnings season is now under way. Last night $NFLX reported earnings and hit a new record high, but the move was well under the move the market was expecting. This morning the stock is set to open marginally higher, giving the option sellers the win on both sides of the chain. Historically Netflix has offered some tremendous out of the money trades into the report.
The bears are right once again. They've been' right' every single dip all the way to new record highs. Don't get me wrong, I'd be cheering loudly for this bull market if it wasn't built upon the backs of future generations. But price is price, and price has been heading higher for over 8 years, market crash pundits be damned.