After forming an island reversal last week, complete with a massive bearish engulfing
candle off of all time highs, the break below the trend line
support and 20dsma seemed fitting. Today's action was bearish
, as volumes were subdued relative to recent down days. This suggest that few participants are eager to defend prices in a significant way and bid the market higher, so it seems bears have taken control of this market. I'm a seller, especially specific names heavily weighted in the index. I closed TWTR
short today after huge success, added to NFLX
short, initiated ADBE
short, stood still on my TSLA
short, and opened a deep OTM FB
long put after noticing unusually high volume
at the April 115/120 strikes (several spreads, buying the 120's and selling 115's and massive volume
relative to open interest). I also took a flyer on ORCL
, buying April calls for a bounce, as this selloff seems overdone.
Bottom line... Watch out below!