Communications (XLC) and Consumer Discretionary (XLY) spent about half the week each at the top of the sector list.
But it was Utilities (XLU) that would rise at the end of the week as the winner. No doubt a defensive play going into the long weekend and a turn of the clock to a new year.
Energy (XLE) had a very short-lived time at that top on Monday morning,...
-ST divergence in the fall- confirmation of trend change to at the VERY least follow the boring, ascending slowly yellow floor???????
-test of yellow trend again->slow burn
-bounce off 50% gap followed by BO, Retest, Resumption of Red
-BO-R-R off green, up to fill the gap from the crash and 83
-insolvency crisis in 21 to bring it back down yellow?
-gunna watch...
EARNINGS:
I've culled down all of next week's earnings announcements to options highly liquid underlyings where the 30-day is >50% and am left with two potential candidates for volatility contraction plays: BBBY (23/99/26.3%)* and MU (23/53/14.0%).
BBBY announces on Thursday before market open, so look to put on a play in the waning hours of Wednesdays session;...
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Hi fellows, just one of my today swingrades:
As you can see ERY bottomed out and forming a bull flag pattern.Rising bull momentum is there clearly represent by divergence on Momentum and CCI...
... for a .51/contract credit.
Notes: The exchange-traded fund with the highest implied 30-day on my board. 1.6% ROC at max; 13.0% annualized. Will add "rungs" in subsequent cycles (i.e., Jan/Feb/March) if implied hangs in there.
The short trading week was not without its excitement.
Financials (XLF) was the big winner of the week. The fed stress test last week resulted in banks being allowed to resume share buy bank programs, giving some tailwinds to the sector.
Technology (XLK) took the lead on Tuesday, but fell back into second place at the open on Wednesday.
All other sectors...
With two shortened market weeks in a row for Christmas and New Year's, I probably won't be doing a ton here, but figured I'd do a post for how exchange-traded funds are looking in the waning weeks of 2020 ... .
EXCHANGE-TRADED FUNDS ORDERED BY PERCENTAGE THE AT-THE-MONEY SHORT STRADDLE NEAREST 45 DAYS IS PAYING AS A FUNCTION OF STOCK PRICE:
SLV (32/46/11.9%)
GDX...
The sectors took on a character we have not seen for some time.
Technology (XLK) is back to leading the sectors for this week. Helped by a number of breakouts in technology growth stocks, some of those fueled by speculation in security stocks following a wide and troublesome security breach that impacted both the government and private sector.
Consumer...
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Long 1000 $CVX
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Mean Reversion Time: 12 Trading Days
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Statistical Arbitrage Opportunities Delivered to Your Inbox.
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Long 1000 $CVX
Short 2169 $XOM
Mean Reversion Time: 12 Trading Days
EARNINGS ANNOUNCEMENT-RELATED VOLATILITY CONTRACTION PLAYS (IN ORDER OF ANNOUNCEMENT):
Here are the options-liquid underlyings announcing next week that I've culled down to 30-day >50% as candidates for volatility contraction plays:
LEN (21/49/11.6%),* announcing Wednesday after market close
MU (24/52/12.2%), announcing Wednesday (no time specified)
FDX...
Despite starting the week in last place, Energy (XLE) rose to the top of the sector list starting from Tuesday as the first vaccine doses were made available in the UK. That positive vaccine news boosted the sector that is likely to benefit from the increased activity in travel and leisure sectors.
Communications (XLC) led at the beginning of the week, but could...
EARNINGS:
No options liquid underlyings announcing earnings this week that meet my criteria for a volatility contraction play, although ORCL (24/31) and WORK (2/33) both announce and could be played in some other way.
EXCHANGE-TRADED FUNDS RANKED BY THE PERCENTAGE THE JANUARY AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
GDXJ...
Energy ( XLE ) is now in its fourth week of leading the sectors list. It didn't look that way at the beginning of the week when it sold off off sharply amongst disagreements between OPEC members on future oil production. It rose back to the lead as those talks began getting better on Wednesday and OPEC finally had agreement on Friday.
Technology ( XLK ) and...
From the NYT : "Under the agreement, members of the Organization of the Petroleum Exporting Countries along with Russia and other countries will increase production by 500,000 barrels a day in January and, potentially, by a similar amount in the following months. The increase, less than 1 percent of the global oil market"
From WSJ : "The price rout has also laid...
We don't listen to stories about a future no one knows we just simply trade reversals and continuation wave formations our model gives us. We highlighted the xle in late october and took the trade early november. Obviously the vaccine news was a huge boost and we had no idea it was coming but that's the beauty of markets- you don't know what you don't know. So we...
EARNINGS:
It's a light week for earnings announcements, which means it's an even lighter week for options liquid underlyings, none of which meet my cut-off for 30-day implied >50%.
EXCHANGE-TRADED FUNDS RANKED BY PERCENTAGE THE JANUARY AT THE MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
XOP (18/59/15.8%)
GDXJ (16/42/13.2%)
XLE (26/46/11.6%)
KRE...
