The Market Today 07/13/23
Today’s will be short and sweet
A few things I am looking at this Thursday
First up is the VIX. Calls outpaced Puts yesterday at an almost 2:1 clip. Not saying this means anything, they could have very likely been sales. But the biggest block of almost 50K calls went off at the mid. Usually, strict sales happen at the bid.
Next up is tech. the Q’s are above yesterday’s close Premarket and above the recent high we put in Mid June.
This could be a consolidation breakout, or a solid stop run. Time will tell but watch for volume. If we maintain volume and price over the high, it’s possible we are ready to watch another run-up happen.
We have a ton of room before we hit our previous ATH.
I will be playing this one both ways, from an economic standpoint I do not see us strong enough for this continued move. But the FED seems hell-bent on breaking this and if they skip another rate hike this year….well better be long
Finally, there is sentiment
This is less an exact science and more of a “gut feeling” which I hate trading by.
Everyone and their mother seems to think we are in a new bull market, and I guess technically they are correct. It’s been a hell of a year so far. But when everyone gets long I get wary.
I guess the point of this is the easy money may have already been made. There may still be plenty of room to run, but I would imagine they will make you work for it.
Being on the short side of any options trades may make it easier. If they decide to park it somewhere, you will at least get the Theta Decay.