SPY Friday felt like a proper gamma squeeze. This is when too many players get caught short calls and are forced to buy into strength… Causing a huge momentum shift in the market. Gamma squeezes can lead to nice moves higher, but they tend to die off quickly and be a function of which options […]
This market’s sentiment can completely turn on a dime. Around a year ago, the market was setting up for new highs. Although some momentum stocks were crushed early, we didn’t see serious damage in the markets. Now… We’re down 30% off all-time highs, and it seems like the entire market is at the whims of […]
One thing traders can do during nasty bear markets is look for stocks showing relative strength. You can measure relative strength in many ways, but the easiest way is to just look at the recent pivot highs and lows. Let’s look at XLK, the SPDR Technology ETF: It should be clear this market’s been making […]
Last week, the market had a nasty crash off the CPI print. And even through all the instability, our Roadmap levels worked out great. When the market becomes deeply oversold, getting “cute” with the options market can be tempting… But I’ll prove to you the best strategy to play for a bounce. Option Premiums The […]
Every trader is focused on the US’s next inflation numbers. Yes, it’s bad… But it could be worse. Here’s a chart of dollar futures: The dollar has rallied 16% year-to-date. Right now, the dollar is the safe haven against much of the macro risk because inflation is high… But it’s a lot worse in Europe […]
SPY Let’s put the last week in perspective. We had the hot CPI print, signaling inflation was sticking around and would force the Fed to adjust its policy. The Fed meeting and quad witching expiration happened in that same week. The S&P moved over 9% from high to low in three days… we can consider […]
He did it. The madman actually did it. This week, the Fed hiked 75 basis points. That’s the first time this has happened since 1994. I know what they’re trying to do… inflation’s running hot, and they want to cool it down. But it’s a tough call to make right now. I don’t think much […]
Let’s say you were an art student and you had an assignment. Take a classic painting… and make it bigger. Expand it out to add more details around the original painting. Quite a challenge, right? You’d need to match the paint style and color scheme, and have the imagination to extrapolate what the exterior would […]
