Posted on

Well, it sure was an action packed week & what a (fun) perfect way to close it out into Friday’s bell as well .. With MOC buying building up from as early as 2PM & AAPL+SPY same day expiration sweepers scooping up those 8 cent calls, it allowed us some time to ride the wave into the closing bell .. We also learned a few different things from the week & that’s always good .. To start, Fed has got the bulls back & not going anywhere anytime soon .. There’s also still an incredible appetite for “new economy” & tech leadership out there .. You can officially add 5G chip stocks in that category now as well … And while there are some signs that they are picking a few spots in selective cyclical, economically sensitive & value plays, Sweepers still aren’t showing much excitement at all in these names .. Under the hood, there has been some healthy digestion in sectors, which we needed to see .. Software names have been digesting, even though they started to heat up late week .. Biotech has had a nice pull from the highs .. So this market continues to do its thing, non stop rotation which will hold the indices up .. Hopefully now as earnings starts to dwindle down by the day, we get more clarity out of flow, especially if they continue this random rotation & we need to rely more on stock picking.. There is also a chance of full participation in a leg higher which will likely lead to a melt up in the indices .. As far as playbook, remaining quick & tactical has been the best risk/reward to this point as many of the large upside moves have stemmed from earnings reaction .. So, unless you had intentions of taking on the added risk of holding through numbers, you wouldn’t have benefited .. Once again, hopefully post earnings flow will present a better risk/reward picture for us to lengthen the leash on fresh names .. Lastly, not much change in sentiment.. Simply put, the music is still playing out there .. There still is 0 conviction from investors & all the bullish sentiment out there continues to be spec players in short dated strikes in the options market .. Short term heat could lead to sticky price action, as well as a quick flush but they remain a buying opp until “everybody gets in the pool” .. Obviously we will discuss all this & a lot more on the Sunday webinar, I’ll see you folks there @ 6PM EST .. HAGW degenerates & stay safe!