🚗 A Capitulation Trade Post-OpEx?

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Hey OP Crew, Griff here with your Chart of the Day. Stocks are holding on by a thread. Overall, we saw a pretty weak bounce post Oct20 OpEx. Now we will see if a capitulation trade is ahead of us. Global bonds were weak today and the Treasury 5-year auction was awarded at .02% behind the market rate at 1pm. That was the worst result in over a year ... [( We have a target of 4100 below that would meet the target of the Head & Shoulders and also a 50% fibonacci retracement at 4050. Most damaging would be a close below the 50-week MA at 4,189 … Tomorrow, the market must absorb $38 billion 7-year Treasury notes at 1pm, which will be another test. Stay tuned. Let’s Go! [ Trader's Edge: Trades Review and Earnings Preview Today I’ll review a couple of trades. I’m also going to talk about earnings and preview a couple of earnings coming up. We’re gonna be looking at major levels in the SPX, talk about the VIX and we’ll look at a couple of stocks I’m watching closely as we head into earnings season. [Click here to watch today's video.]( - Mark [( Profit in Pumps: SPX Looking Higher On Monday I was saying how important the close was going to be. You want to know why? Because the S&P 500 Index (Ticker: SPX) was flirting with its 200 day moving average. SPX closed Friday and Monday below that support level. To have a third day close below such a significant support level would be very bearish. Here is what SPX did: [( As long as we hold $4237, we could see SPX trade back up to $4300 and $4330. You will also notice Monday’s action created a beautiful doji. A doji is formed when the opening and the closing prices are nearly the same. The bulls and bears are battling it out and neither side is victorious. This causes uncertainty which is all it takes to end a trend. A doji is found at the bottom (top) of a downtrend (uptrend) and could signal a change in that trend. Monday’s trade higher could be the confirmation we need for that doji. [If you go here I will give you a way to play it.]( - Licia Power Income: Real-Time Option Flow is a Game Changer What's it going to be? Are we putting a low in stocks in October which will be followed by a very strong seasonal pattern of stocks higher into year end? Or, is the negative delta notional of option flow that pushed the VIX to $20+ last week a signal that the S&P 500 index (Ticker: SPX) will rollover and ultimately close below the key 50-week MA … This is actually NOW a simple answer to find thanks to my new tool that I’m going to unveil to you - no more guessing - real NEW data that shows anticipatory direction NOT JUST A CHART that is always late. [( Following real-time option flows and changes in delta-hedged option positions provides critical insight into option flow changes as they happen instead of after the fact ... [You will not believe the power of this option trading tool.]( As option volumes have soared, option positioning gamma analysis has become as important as fundamental and technical analysis. [Click here to read more ...]( - Griff AG's Views: Flat Again ... From the desk of Option Pit Director of Education Andrew Giovinazzi VIX is closing with a flat curve once again. That means short term volatility is spiking, which causes the VIX term structure to get flat, or the same price for VIX, Nov VIX and Dec VIX. It also means the market has no idea where VIX will be in the short term. [( I expected Microsoft Corp (Ticker: MSFT) to lift us out of the doldrums. I expect having a Speaker of the House and Israel postponing an invasion to be market positive and VIX negative. For now I am wrong. I might be right tomorrow. I closed some SPY puts today in the [Trading Desk]( and am looking for a bounce tomorrow. The VIX curve says it could happen. - 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: Meme stocks: Typically stocks that are popular among Reddit and Robinhood users, called that because millennial traders often make memes about stocks they’re trading. [( 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. 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