Order flow was heavy today, let’s start with that. Not overnight, but from the opening bell there was a flurry of action taking place. This week is huge, the rotations are huge, and the crescendo is scheduled for tomorrow.
The weekly strategy signaled a short and I was skeptical of it, coming only two weeks after the prior signal. It merited respect, nonetheless, and to a certain extent, thus I envisioned how it might play out:
Checking back to the #NQ_F Thurs/Fri gap early next week is my dream trade.
— Raul (@IndexModel) April 25, 2015
The essence of the idea is to see the weakness play out early in the week, adhering to the signal, but ultimately being a trap, due to the overwhelming health of the market.
What do I mean when I say health? Industries are taking turns with strength. On a higher level, sectors too. Healthcare may start seeing money rotate out (it might not) but the funds are going elsewhere—last week to Technology in a big way, this week Materials.
But ultimately we need to see how Financials perform after tomorrow’s FOMC Rate Decision. The S&P and Dow showed divergent strength. If they intend to demonstrate leadership, they best do so with unabashed confidence and supremacy.
Either way, I will be prepared to trade these powerful markets to finance my Twitter investment.
Finally, Exodus is live. The gods are dancing naked on the beach, pleased by man’s accomplishments. Congratulations to The Fly, the team of engineers, and the supercomputers (always show gratitude to the robot overlords). This is a huge asset—an integral weapon designed to devastate financial markets with unparalleled offense and utility. Don’t hesitate to ask me how to works.
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Someone agrees with your healthcare thesis. 2k HCA may $77 puts. Someone is laying half a mil on a bet they go down.
I’d imagine those puts will pay.