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Sang Lucci

Sang Lucci has been successfully trading options for over six years. He began his career at a proprietary trading firm where he studied the techniques of other traders while managing his own account...

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Mid Day Trading Update – A Shift In The Tide

For the intraday traders out there, no doubt you have noticed the change in the current trading environment to a weaker perception. Rallies are now being sold off but the sheer extent of the rallies themselves is getting out of hand. We’re seeing the SPY spike up close to 10 handles and then drift right back down to lows. My instincts are telling me that smart money is trying to make sure nobody can really hold their short positions for that long before they initiate the squeeze plays to burn you out of your puts.

Banks today have been trading very erratically and I believe the smart money is using that sector to manipulate the perception of the masses. The whole sector looked like it was going to collapse then managed to stage a massive rally bringing JP Morgan (NYSE: JPM) well into positive territory. The Technology sector is performing miserably today with Google (NASDAQ: GOOG) & Amazon (NASDAQ: AMZN) at the head of the pack in terms of the weakness.

Dip buyers are feeling the wrath now finally after months of being proven right over and over again. The key now will be to focus in on the SPY to see if we have yet another leg down to put in. We are literally JUST getting into the thick of earnings season and if they’re already pricing in a dismal season then what is going to prove investors wrong. Will it be the tech sector like the earnings coming tonight from IBM (NYSE: IBM) & Google? Or will it be the retail & housing sectors that produce solid earnings to bring back the bulls?

Either way folks, this market just got very interesting and daytrades are again swarming in numbers. For the intraday folks, play the momentum and watch the shift in the tides…

Make sure to register for the webinar after the close today I promise you will enjoy it!

Stay tuned for more updates!