The Dow Up 457 And the Nasdaq Up 460.70

Look at these gains today. Today is a Thursday. Meta is up $18.04, AMD is up $17.49, NVDA is up 110.55, AMZN is up $6.00, ELI lILLY is up 23.75, SUPER MICRO is up $241.52, NETFLIX is up $15.12, COSTCO is up $11.38 AND MODERNA is up $11.85. Gains of $110.55 and $241.52 in one day on two stocks! What's that all about? Well warning bells should be going off. We must be at a short term top. Three stocks stand out to me that are having changing stories. 1) Moderna. 2) Rivian. 3) Lucid In these crazy markets a lot of these stories get buried. Option players in these markets are getting whipsawed and it is getting to be to difficult a market to play in. Once this final round of earning reports are over things should get back to normal.

Rethinking Setting Up A Deere Position One Week Out

A rough opening this morning.
A news release which I thought wasn't all that bad. Rising sales during a period of covid!
A further morning decline in a market which was holding it's own in the first hour of trading.
What to do? Why not buy a Call with one week to go? Here is what they cost at 10:13 a.m. and here is what the five day chart looks like as of 10:30 a.m.
But wait. The markets sometimes turn south in the afternoon and more importantly the trading volumes on Friday afternoons often dry up. Look at how the markets (the DJI is selling off). Might it drop more on the day? Why is there now a rush to play the upside? There isn't but look at Walmart and Netflix. They both have a similiar story.
We will soon be going into a Friday afternoon, which is not a period of time when the markets tend to rally. My interest in looking for a rebound is now waning. Here is how these Calls closed out the day. The problem now is that this particular series is now to far "out-of-the-money" to consider.
Here is the closing one day chart.
Fridays in general are not good times to be looking for reversals. These markets as of late are wicked. Deere lost $51.31 on the day. (This chart doesn't show the lower gap opening which was a big chunk of the loss on the day). Walmart also lost over $25.00 in one day a few days back. It's a market where everyone has lost money. Clear skies will be slow in coming back.


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