💡FRIDAY’S FLOW NOTES

Friday’s session started off looking good .. A handful of solid bets throughout the morning, a healthy pace of sweeper activity .. even the overall flow which has been sloppy & dominated by earnings positioning, looked like it was attempting to clean itself up a bit .. Then came some aggressive rotation out of Nasdaq names & it created a real f’n mess of things .. The good thing is, we got through another major week of earnings & the list of post earnings candidates to potentially see sweeper activity got a lot longer after this week .. Its also fairly evident at this point that there is rotation out of at least a good number of overextended “disruption” plays .. We are also undoubtedly seeing rotation in the other direction into more economically sensitive, value & cyclical plays .. The problem we were facing has been 2-fold; the lack of confidence behind “earnings flow” & the rotation hasn’t been an all or none shift from growth to value, it’s been fairly selective & random on both sides of the rotation .. We’ll discuss this topic a bit further on Sunday’s webinar & how we may want to look to play off this current phase in the market .. As we’ve discussed at length since earnings season has started, it hasn’t been smooth sailing, to say the least, swing trading individual names while the indices have continued to push higher in recent weeks .. Its been extremely sticky, sloppy & a lack of participation behind many of recent up days .. That’s why it pays to be prepared ahead of time for such a climate because it can drive you nuts, it likely will regardless .. You hear the words “melt up” & some may think you can buy everything & anything, obviously not the case. Especially through earnings season .. I still believe me need to see tactical bulls catch that quick “jab to the jaw” in order to loosen up this price action .. Just a solid 1-2 day washout, with some awful breadth behind the selling .. That could easily set up a solid snap-back squeeze with healthy participation behind it but this market just won’t give it to us. Why you ask? Because AAII sentiment is still in bullish territory & the riff-raff club remains short up to the eyeballs in index futures .. And now GEX (gamma) has pitched in to add to the stickiness in price action as well .. It’s certainly possible we can still see it with these forces at play but it makes it a lot more difficult.. Ok my friends, I’ll end this post here for now .. but we have a few things to discuss on the Sunday webinar to help us better prepare for next couple weeks & avoid trouble .. if you have any questions at all, on any of this, bring em to Zoom on Sunday .. Stay safe & HAGW!

DeMark bears will be out in full force this weekend with a (13) printing on SPX Friday & a likely upside “niner” coming as well on Monday