Now Reading
Staring Into The Abyss

Staring Into The Abyss

by The MoleSeptember 18, 2020

Once again the week started out with an attempt to ignore seasonal bias but then slowly degraded as time went on. Let’s be clear, the bulls had a perfect shot at recovering the ball and controlling the game again but then fumbled only yards from the end zone. Looking at the overall market it’s easy to assume we’re only looking at second dip buying opportunity but if we did a bit deeper things are looking a lot less optimistic.

This week’s expected move (EM) threshold once again proved to be an important inflection point. A push beyond it would have triggered a ton of margin covering activity. Especially since it lines up closely with a previous spike high (ES 3425) we painted on Wednesday of last week.

Which also means we now have a well established overhead resistance threshold that we can use to plan our future campaigns. If you’re short the Spiders or the SPX then a stop loss a little bit above that threshold is advisable.

I talked about ‘digging deeper’ and what I am referring to in particular is the theme I have been harping on about for the past two weeks: BIG TECH.

Well it’s failing and my ‘monsters of tech’ composite symbol comprised of FB, MSFT, AAPL, AMZN, and GOOGL is starting to look increasingly bearish.

And once again it’s not for a lack of trying. I’ve posted this OCC list of the most active options contracts repeatedly over the past week or so. Every single time call volume across big tech outweighed put volume on average at a 3/2 ratio.

However as you can see that is slowly changing now as tech stocks across the board continue to slip. If you think about it however – this has huge implications as to what may happen next:


It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

Sign up here to receive my FREE early morning briefing:

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c