Posted on May 16, 2018 2:51 am

DrosNotes - 05.15.2018 - Market Recap and Expectations

[Note: I’m essentially going to be starting a newsletter that’ll be short-form most of the time. There’ll a side-page on the blog once that kicks into gear for these notes. PDF Version is linked at the bottom]

Hell of a day.

Some solid gains on several names, but the markets as a whole have gone loco. MUY loco.

For an extended period of time during the day today..stocks,bonds,gold, volatility AND the dollar were ALL trading down. Even weirder, downward pressure on all of them simultaneously.

Market dynamics tend to behave in a manner that asset classes are typically forces that act against each other in some weird and twisted attempt at a contrived equilibrium.

That makes it harder to try to forecast the market and for options trader with positions expiring fairly soon.

More of my options account right now is in cash than it was last week, and it’s WAY more than it was say in February. That’s because 1. It’s safer. But…2. It gives me time as a trader to take advantages of obvious market opportunities, like $SYMC last week and $SBUX today.

What To Expect Tomorrow

I’ll be honest, my confidence level on this one is low. Over the weekend I said we’d go up around mid-week and I want to think we still do. A stack of big MAY18 expiry $SPX calls hit at ask today… which makes me want to think that there is a move up tomorrow. Maybe a bullish open that accelerates upwards into the morning, starts then getting choppy..fades and closes up?

Or it might just fade out hard. I’ll keep you guys posted in the room, etc..

Like I always tell you guys that’s a TOTAL guess based on nothing at all really. I like to try though.




PDF Version: Dropbox Link

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