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What Happens When You Get Four Stocks All In The Same Sector Going Up In One Day On A Monday?

First of all it usually means something good is going to happen in the sector. It doesn't really matter what it is or why. This time it's in a sector we can call "used vehicle car sales". Some option traders trade exclusively in this sector as you sometimes see blocks of 20, 25 or 50 contracts trade at one time. Well, not so much as of late. It's big "retail-money" or trades made by wealthy individuals. Why spend millions of dollars building up a car dealership empire when you can follow and profit from what is happening in the industry just playing stocks and options on it in the right direction? That plus the advantage being able to take holidays when ever you want. Here they are. 1) NOW HERE IS A CHART OF CARVANNA. I have done recent blogs on this one. Here is it's five day chart. Is everyone hoping for interest rates cuts? (Jerome-Powell-Jackson-Hole Annual Summit) to come later this week, just another speech by some old man). If rate cuts star...
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Trump Says "We Will Be Off To The Races When China Calls".

First Solar tanked on the opening (a Wednesday) on news of an economic slow down and Trump talk. At 9:43a.m. the D.J.A.I is down 630 points.
First Solar took a hit.
Now this about ten minutes later. The stock has stabilized. Volume on the Call side is increasing.
One trade at $2.86 and the spread between the "bid and ask" actually widening. It's the catching the falling knife syndrome. Now this.
The DJAI keeps going down.
Twelve minutes later strenght has come into these Call options. The spread between the "bid and ask" remains crazy high. The stock has stopped falling.
Where are these options going to be in ten minutes time which will be 10:20 a.m. Can you see how nerve racking playing this sell off is?
The "bid and ask" are now tigher. Normalcy is returning. Or is it?
Now a recap. $2.99 at 9:48:00 a.m.,$4.00 at 10:00 a.m. and $5.40 at 10:10 a.m. Only 29 contracts traded during this time period which tells us that option traders are not conditioned to be playing these kind of moves. Nor is Ai trading considering the millions of dollars they spend on tracking and profiting from market moves. Yes you can catch a falling knife. Notice that this stock started to rebound before the DJIA stopped falling. Successful Call option traders had to recongize that. Now a 11:20 a.m. reading.
Notice the increase of only one Call option traded? Now the final end of day pricings.
The DJIA closed up 148 points. :::::: Now a next morning look.
The end.

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