Today's rally came just as everyone had predicted... right? Amid the heavy selling and broken support for most of this past Fridays trading session it was tough to maintain a bullish stance on the market. The terrible market breath (sic). The rolling over of the averages.... but alas. The markets again defied the odds. It rallied overnight, it rallied at the open... and then it rallied some more. The streak was snapped. The world was saved. We will live another day to inhale all that garlic breath.
$IWM has offered a great insight in 2015 - in terms of timing a reversal in the market. That $120 level has acted as a spring board for higher prices. Ultimately on Friday that $119.88 close left it under key support. However today's massive rally got it back over the $121 level and set the stage for a continuation of today's bullish action.
Here is today's Option Action Recap
Stocks opened the day lower, rallied back to even, and then collapsed into the close, ending the last day of the quarter sharply lower.
S&P500 Futures are now trading below Monday's open.
Today's late day action wasn't the only excitement. Numerous trading vehicles had to be halted in the middle of the session, including the $VXX. The $VXX halt was 5+ years in the making.
Was today's late day trading action an indication of what is to come? Or was it a product of end of quarter window 'undressing?' More on that and some potential moves coming for $TLT, $SSYS, $TWTR, but first: here are tonight's scans:
Unusual Option Activity - 3-31-15
Stock Scans - Bullish / Bearish Crossovers
The market, despite what the VIX is saying,
$XLE was sharply pulling back in 2008 a few months ahead of the market collapse. It was telling market participants that weakness was around the corner. Anyone who took this as cue to exit longs positions was saved from a historic sell off in the stock market and a panicked revaluation of assets. It was, unlike the last 5 years, a great time to be shorting the market.
