Good morning traders!
FOMC minutes are behind us. Jobless claims just dropped showing a slight beat vs predictions. I wouldn’t read to much into this one.
Markets finally broke out of that pennant we were watching last week with a fakeout to the upside. We’ll see how low we go but we should be hitting support around 7630-7650. Risk-on sectors are down pre-market with defensive sectors also down to neutral alluding to some chop today.
I don’t think we get a huge sell off, at least not yet. There are few rotations we can watch for clues. The first and my favorite is the XLY/XLP. We’re not seeing money run from XLY into XLP right now. If that curve starts to turn bearish then we should be worried but for now i think its a buy the dip scenario. You can see when its overlaid with SPY, they are somewhat correlated.
You can see below that it usually gives us a little bit of a warning before pulling the rug on the broader market. Blu e is SPY chart.
We’re not there yet until se see some bigger downside movement.
No changes to positions yesterday aside from a reduction in MRNA 0.00%↑ runners.
Portfolio Update
We currently have
MRNA runners (calls)
META runners (puts)
GOOG shares (runners) - short postion
HOOD leaps
DKNG shares
RKLB shares.
Depending on price action I may look to add some positions today.