Is there a serious turning point?
S&P 500 was down 27.11 points with a 0.86% drop in yesterday's trading session. In the past few weeks SPY straightened up almost every day since the beginning of October, and during this period SPY smoothly waved inside of the expected move which indicated by options chain. However, yesterday SPY edged downside of this range and people started questioning if it was a turning point for the market.
So today, I am going to detail some things that you may need to be aware of if the market actually is going down seriously. As we start to look at the SPY, yesterday's session caught some sell-side activities, but it's was not took place in SPY first, it's started with the QQQ and then affected on various parts of the broader market. Yet, some capitals are still finding its best rotation in the products like MO.
For further details, what you really need to consider is the financials, and XLF was down 0.63% yesterday. Why should detail XLF? Because XLF as the market's fundamentals, that led the market to the rally in the past two months with an 11.13% gain while SPY had up 7.31%, on a YTD basis, it has increased roughly 25%. So if you want to see a major sell-off activity to take place in the market that has to be led by the financials, currently it just remained solid in the market place.
With some sell-side activity still on holds, what do traders do, they simply just flip over to the bond markets. Since we are seeing that TLT is still in the downtrend with lower highs and lower lows, XLF would not necessarily lead the market to the downside. People always mention about the technology, but for now you should forget about the tech sector, the tech sector may be could step into some sell-side activities but it ain't gonna get things done. If the market is going to get hammered it has to be done by financials. Besides if you try to take look at BAC, BAC is still up in the last trading session. With the big bets detected from yesterday's options chain, BAC got over 1 million valued long calls scheduled in December which also could signal people seems to be quite bullish on these banks for moving forward.
So today, I am going to detail some things that you may need to be aware of if the market actually is going down seriously. As we start to look at the SPY, yesterday's session caught some sell-side activities, but it's was not took place in SPY first, it's started with the QQQ and then affected on various parts of the broader market. Yet, some capitals are still finding its best rotation in the products like MO.
For further details, what you really need to consider is the financials, and XLF was down 0.63% yesterday. Why should detail XLF? Because XLF as the market's fundamentals, that led the market to the rally in the past two months with an 11.13% gain while SPY had up 7.31%, on a YTD basis, it has increased roughly 25%. So if you want to see a major sell-off activity to take place in the market that has to be led by the financials, currently it just remained solid in the market place.
With some sell-side activity still on holds, what do traders do, they simply just flip over to the bond markets. Since we are seeing that TLT is still in the downtrend with lower highs and lower lows, XLF would not necessarily lead the market to the downside. People always mention about the technology, but for now you should forget about the tech sector, the tech sector may be could step into some sell-side activities but it ain't gonna get things done. If the market is going to get hammered it has to be done by financials. Besides if you try to take look at BAC, BAC is still up in the last trading session. With the big bets detected from yesterday's options chain, BAC got over 1 million valued long calls scheduled in December which also could signal people seems to be quite bullish on these banks for moving forward.
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