For the second day in a row money is rotating out of financials into big technology.  The market seems to be posed for a big move in either direction.  Be ready for some wild trading activity during the remainder of this week.

You’re not alone if you felt confused about today’s trading activity and the divergence between the majority of negative stocks and the continued upward action of the indexes, especially the NASDAQ.  That’s in large part to market cap leaders such as Apple (AAPL), and Amazon (AMZN) that made new all-time highs with the /NQ, but also general strength in leading tech stocks.  In tonight’s video, Corey explains the unique factor of today’s tape and updates the ongoing plan for how to conceptualize the price movement and your trades.

Financials lead the way as the XLF level closes above the crucial 26.50 level.  BA helps lift the Dow higher and risk on trades in the energy sector.  Here’s the key stocks to watch this week…

Employment Situation– missed the broad-side of a barn– dragging out instability within employment– will the FED will tapper the asset purchases? Anything but normal…–SPX smashes the weekly Expected Move SPX Expected Move–last week– 78.31 (expected)–next week– 78.38 Bonds– we are back baby! — bonds crushed and the range is broken– rate are a flyin’ Outsized Movement — XLF, XLE, EEM, TLT– I am a buyer of premium!– ranges in bonds, gold, dollar, spx– Setup in GLD

In case you missed it, some of the strongest stocks in the SP500 today weren’t financials, but airline stocks.  That’s in large part because these same airline stocks have lost so much value over the last month.  However today was the day aggressive call spreads and bullish ‘fade’ or reversal duration positions went in the money thanks to a lot of patience. In tonight’s video, Corey highlights these stocks and explains why patience is key in trading against a trend.

Learn an important lesson in risk/reward in these markets. No matter what your market bias is you must know how to sustain positions even when you’re wrong.

Bullish hedges against bearish positions are paying off and we may need more of them as this rally gains strength and the market breaks higher, possibly through a strong rally ahead.  The NASDAQ is 100 points off an all-time high while the SP500 plays catch-up, but catch-up it certainly can.  In tonight’s video, Corey highlights the strong stocks making new 52 week highs and a few familiar names keep appearing there.

All eyes were on volatility today as the S&P’s continued to grind higher throughout the day.  Don takes a look at the two sectors that have driven trade lately, the Financials and the Monsters of Tech and explains how the S&P still lags behind some strange sector rotations – What Gives?

Ripping to the upside on a wing and a prayer… Is this a short squeeze or real buyers? Pop goes the volatility Box Who says volatility cannot be to the upside. Bonds UP, Market UP? VVIX under 110 Monsters Weak Relative to QQQ SPX Expected Move –last week– 71.62 (expected move) –next week- 78.31 (expected move) Sector rotations continue, market musical chairs Tech Financials Energy Consumer Staples Oh my LULU hurts… risk reward is beautiful

We had initial upside breakout activity above the weekly expected move today, but all that was erased with a sharp sell-off in the close that froze price right at the weekly expected move.  In tonight’s video, Corey highlights the similarities of last week to this week and how we’re framing the opportunities in stocks, bonds, Gold, and Oil right now.