Energy Ripe for a Pullback? Here’s a few Trade Ideas
June 7, 2021
As the market continues sideway action let’s look at the XLE for the possible next rotation out of. Here’s a risk defined trade idea if it made sense for you…
As the market continues sideway action let’s look at the XLE for the possible next rotation out of. Here’s a risk defined trade idea if it made sense for you…
Market Update––Jobs Number says Goldilocks is Back!–Financials and Energy leading markets–Tech Lags–Vol Crush Bonds Breaking Out?–bonds/rates drive market dynamics–Tech–Financials Skew Continues to Dominate–markets are pricing tail risk–VVIX, hedgers are still prevalent–premium selling spectacular, back months SPX Expected Move–last week– 50.73 (expected move)–next week– 53.14
We are days overdue for a pullback and we finally saw decent sell-side activity this morning, giving profits to patient bears. But beneath the percent loss in the index, more rotation and chop continued as roughly 50% of stocks were bearish (down today) and 50% were bullish (up today). In tonight’s video, Corey digs deeper into today’s market to highlight what we’re watching into next week…
Don takes a close look at the $50 expected move, for this shortened holiday week, and reminds us to pay close attention to those levels whether is to the upper or lower edge. AMC racks up an astounding number of contracts that were traded at the marketplace. Tune in to tonight’s video and find out why Don feels this is not a winning strategy….
The standout sector today was Energy (XLE) boosted by leading companies XOM and CVX rallying on the strength of Crude Oil /CL breaking to a new 52-week high. In tonight’s video, Corey pinpoints these developments along with other leading stocks – particularly financials in XLF – making similar new 52-week highs while the rest of the market trades within the ongoing volatility box…
Market Update––Sector Expected Moves–Trade Stagnates but Risk Amplifies -OCC report–Bond impl vol vs Historical Vol It’s Good to be Positive Theta––premium continues to burn–volatility crush–allocation we have a stagnation issue! SKEW at HIGHS!–premium sellers start your engines!–index puts trading for MASS premium SPX Expected Move–last week– 76.25 (expected move)–next week– 50.73
It was another range or chop session for most markets except for the small cap Russell 2000 Index (/RTY) and IWM. In tonight’s video, Corey pulls up the perspective to update the current range resistance “box” levels along with which stocks snuck in new highs today at the height of their range…
There’s still plenty of room in the weekly expected move for the S&P to not keep your guard up for the rest of the week…
Markets particularly the Russell 2000 (/RTY and IWM) remain in a longer-term range rectangle or box and the other markets aren’t far behind. In tonight’s video, Corey updates the price levels and pinpoints fade or sell-short trade opportunities in key financial stocks including the broader XLF ETF…
As stocks continue to go higher we see investors continue to add to their hedges against tail risk. This is a very unusual phenomenon to see. Typically as markets go higher tail risk becomes cheaper. This tells us the market is cautiously bullish as it moves higher. Here are some of the reasons why the tail risk is still priced in…
