🚗Capitulation and Cheerios

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Griff here with the Chart of the Day. I think we can safely say that if you take the Magnificent 7 out of the equation, the market is going through a capitulation stage. The amount of stocks that are above their 50-day ma is in the 2% quartile and lower than the stat showed during the March 22 banking crisis. General Mills, Inc. (Ticker: GIS) has no doubt been in capitulation mode, and it may be time to buy. GIS trades a 20% discount to fair value: [ This recent low was met with a higher low in RSI, which is a reversal signal. A tight call spread with a target of $66 and a nice bowl of Wheaties just may give your brokerage account a shot in the arm. Let’s Go! [ Trader's Edge: Long List of 15 Top Stocks to Watch - Weekly Watchlist Today, I am back with a Weekly Watchlist for you… In this video, I’ll cover key indicators, stock movements, and economic events that could shape the market’s direction this week, plus 15 stocks on my radar. [Here's my watchlist and the full video…]( [Here's how traders can profit by understanding delta...]( - Mark AG's Views: The most controlled selloff ever From the desk of Option Pit Director of Education Andrew Giovinazzi Mark Sebastian and I were remarking about how controlled the selloff in equities is as we wind up to a 20 VIX midday. I don't know how long the selloff lasts but there is at least a loose correlation with bond prices. Bonds go down and equites go down. Rates keep winding higher until there is some action, I believe, out of Congress to control spending in the short term. I am quite sure Bill will have something to say on this, this week. [ For now, with rates rising out of control of the Fed, things remain unstable but there is still not a fierce selloff. Implied volatility per strike in a VIX term was only up .75 today with VIX up closer to 2.00. That means most of the move in VIX is just SPX moving down the curve. That is not a cause for panic. Yet. We did buy some VIX call butterflies this morning in the Trading Desk into the backward VIX term structure. More on reading the VIX term structure in the OP Newsletter tonight. -AG OPTION PIT GLOSSARY [( There are plenty of terms in the trading world that need defining. The [Option Pit Glossary]( is here to help. Today's phrase is: Exchange-traded fund (ETF) - A financial instrument that holds other financial assets like stocks, bonds and gold. [( DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Want to change how you receive these emails? You can [Unsubscribe]( or [Update your preferences]( This email was sent by support@optionpit.com. 1-888-872-3301 [Option Pit]( | 190 S LaSalle Suite 3000 Chicago, IL 60603 | [Privacy Policy]( This email was sent by support@optionpit.com to {EMAIL} Click here to unsubscribe | [Manage Preference]( Daily Newsletters ex. Vix Edge, Pit Report, Profit in Pumps, Power Moves, Power Income, etc. Option Pit | 190 S LaSalle Suite 3000 Chicago, IL 60603