Mid Day Trading Update – Shake & Bake
Markets pulled the rug on many long bias traders this morning, taking the S&P down a few notches and enticing some of the high flyers to pullback. The indexes have since come back to levels seen during the premarket push higher and this type of action can be expected when the bias becomes overly supportive of any one direction. Recently, we've been very bullish and in order to stay bullish, smart money has to make sure they don't make it too easy to make money on the long side.
We're looking at a pretty mixed bag now if we span across the major large-cap sectors. Most stocks are in a holding pattern here while the indexes move into a choppy environment here at the S&P all time highs. Google & Apple were the most active this morning, putting in sharp sell-offs to drive retail money into taking some profits & bailing on their long trades.
The Bank of America (NYSE: BAC) overnight swing worked out nicely and I was able to book profits during this morning's rally over $13. Once the SPY dropped out, she basically took everything with her including the Financials.
It's possible the market goes into severe chop mode to close out the week and the alpha left on the table will be minimal. This could open the door up for some heavy writing strategies to capitalize on the non-movement.
Stay tuned for further updates!
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