Young Buck | Tuesday Mid-Day Update
What's good everyone?
The SPY has pulled back today after the buyer from 169.70 dropped out early this morning. As long as we stick above 169.00, there isn't too much concern to the downside and for all we know, this could be an epic shakeout that recovers fully into the close. The market is weird like that, and it continues to get weirder as volume dies off. Total broad market volume from Friday to yesterday was approximately 18.00% lower, tacking in one of the lightest days we've had all summer.
This doesn't present us with many opportunities in the options market, especially out of the Tech space. The sector rotation out of the space began yesterday, and when the Financials came down with the “flu” as well, we flushed lower this morning. Premiums are draining, and price entries for new directional positions just aren't there. As discussed yesterday, sitting on your hands until we have better opportunities is optimal.
NFLX (NASDAQ: NFLX) earnings were a bust, as the EPS was a beat by 9c but the price action was immediately to the downside with very little recovery throughout today's session. AAPL (NASDAQ: AAPL) reports after hours and will definitely be on everyone's watch list for tomorrow. FB (NASDAQ: FB) and V (NYSE: V) report tomorrow, so Wednesday could be an interesting session for this week. Economic data wasn't prevalent today, however, New Home Sales data comes out tomorrow @ 10:00am ET and is something to watch with the worse-than-expected Existing Home Sales data that hit the tape yesterday.
A lot of names are coming in to support levels today, including AIG (NYSE: AIG) and C (NYSE: C), and the E-mini Nasdaq futures continue to hold the 3030.00 support level as well. WTI (NYSE: WTI) and Gold are consolidating for the day after larger moves from the two commodities yesterday. Keeping it light over here with Lucci away in London, we wait for better price action.
So be the summer doldrums of trading. Stay classy, Sang Lucci readers.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.