Rotation continues..
Daily Update - Thursday 7th December
If we look back to the April - May period of this year if you can remember that was the peak of “0DTE options are breaking everything”. If you look at the chart below the SPX went sideways around 4150 for 6 weeks. Intraday moves on the other hand were 3-4% up and down, ultimately closing close to the open price.
Are we in another period like that? Well after a big move higher the index is now moving sideways. The former laggards are ripping and the winners as we see today are starting to roll over gains being captured.
CBOE, META, WMB and MPC are all dropping out today.
CB, MSFT, AFL, ADBE, CME and STLD all move down to half positions.
PEG jumps back up but I choose not to act until the weekend rerank on these as it went full out. Your mileage may vary.
Front running is a dangerous thing but it is something I have been watching since we moved into the back half of the year. Is it important that Utilities have had the largest move in signal strength?
A great discussion took place on Twitter last night. Well worth a listen. (click on the image for the link)