PLAYERS SCRAMBLE TO ADD EXPOSURE IN FB AHEAD OF EARNINGS

It was just a normal session in FB on Friday .. Overall activity was actually on the lighter side for most of the day, with no real trace of any “notable” sweeper activity.. That was up until 3:40, 20 minutes left to the closing bell .. that is when a couple of aggressive orders (shown below) strolled in as a headline regarding a fine hit the wires 👇🏻

That set off a ridiculous buying spree in FB calls, a non stop pace, all the way up & thru the closing bell 👇🏻

Further evidence of hedge fund money chasing late in the market rally here for exposure into earnings season .. When it was all said & done, here’s what the damage looked like off that wave of call sweepers late Friday afternoon 👇🏻

💡 FRIDAY’S KEY TAKEAWAYS

Overall activity was similar to what we’ve been seeing the past few days, a bullish lean with some earnings positioning & hedging creating a sloppy look/feel .. Bull sweepers do remain aggressive & it’s evident in the flow that the hedge funds are indeed scrambling into equities .. Just look at the activity in 3 names off Friday’s session .. MU BABA & late afternoon in FB into the bell to close out the week .. all 3 names were hit hard call-side & further evidence of fund positioning ahead of earnings .. Aside from block earnings protection, we saw some aggressive put-sweeper action in select names as well.. Not much but the few that did get hit definitely had some actionable momo, like CGC on thurs into Friday .. All in all, it was a decent week for intraday & tactical trading opportunities as aggressive call buying created solid upside momentum in the indices & individual names .. Next week we officially get earnings season up & running .. it will be very interesting to see the reactions, to both good & bad news, off numbers & guidance.. especially coming off this rally, you would thing there’d be some sell on the news out there .. Let’s talk more about that on the Sunday nite webinar ..

SENTIMENT creeped up a bit higher Friday but once again, still has room if they want more upside.. There’s a lot of interesting stuff to go over in the sentiment camp & a few key weekly indicators still need to update.. We’ll save it all for the Sunday webinar to discuss what to keep a close eye on & come up with a game plan for next week.. try & be there but don’t fret if you can’t, it will be recorded.. HAGW !!

💡 THURSDAY’S KEY TAKEAWAYS

Overall activity once again had a really sloppy feel to it .. Underneath the mess today though, there wasn’t much of any notable action .. all the size out there seemed to be tied to earnings in individual names .. there were a few names to see some cheaper spec-sweeper activity, SEAS & X to name a couple .. SENTIMENT was pretty much a non-factor again today .. most short-term indicators hover above the neutral mark.. Looks like HEDGEFUNDS continue to climb back into equities .. it’s definitely something to keep an eye on, especially if there’s some event or trigger to set off some selling .. keep in mind, it’s when HF need to get out that creates an issue, not when they are getting in.. I spoke about this in yesterday’s “Takeaways” post, if you would like to review .. And I think that’s where we stand as a whole currently.. for now, let’s keep a close eye on our short-term sentiment indicators for possible overheat & remain tactical here .. you can just feel the public money getting more bullish by the day & there’s nothing much that’s all that exciting that I see out there .. especially on a risk-reward basis, thanks to earnings getting in the way there’s added risk everywhere.. so I still feel the spec-activity in individual names over the extreme short term is where to look for quick trade opps for now .. at least until we see some big names report their numbers & we can get a gauge on both the flow + price action post-earnings..