Cobra's Market View

SPY 5. Getting squeezed by the EMA 20, the pivot and S/R lines.

5/20, yesterday, Bloomberg: small options traders are bullish to a point that signals trouble for U.S. equities, according to Sundial Capital Research.
“Last week, the smallest of options traders, those with trades for 10 contracts or fewer at a time, opened a new record of net bullish positions,” Sundial President Jason Goepfert [of SentimenTrader] wrote in a note Tuesday. In comparison, very large traders, those with trades of 50 or more contracts at a time, haven’t been betting so much on a rally... That has widened the spread between small- and large-trader net bullish positions to a record, with the gap jumping “like it did in 2008” in the past couple of weeks … This has a strong tendency to lead to lower prices over the short to medium term”  he added.

Daily
Top panel: health is starting to slip (orange)
Bottom panel: megaphone courtesy bb52x … breakout can occur in any direction (upward 61%, downward 39%)
http://thepatternsite.com/bt.html

Al_Dente wrote:5/20, yesterday, Bloomberg: small options traders are bullish to a point that signals trouble for U.S. equities, according to Sundial Capital Research.
“Last week, the smallest of options traders, those with trades for 10 contracts or fewer at a time, opened a new record of net bullish positions,” Sundial President Jason Goepfert [of SentimenTrader] wrote in a note Tuesday. In comparison, very large traders, those with trades of 50 or more contracts at a time, haven’t been betting so much on a rally... That has widened the spread between small- and large-trader net bullish positions to a record, with the gap jumping “like it did in 2008” in the past couple of weeks … This has a strong tendency to lead to lower prices over the short to medium term”  he added.

Along the same lines;
"... what we have in the market is an unholy mess. We have bored, unseasoned, emotionally conflicted investors playing around in a murky pool where one of the most opaque sectors has the ability to make the biggest waves. It's very stupid — people are going to drown."

https://www.businessinsider.com/perfect ... now-2020-5

Not that I care much for most BI content :/

K447 wrote:It's very stupid — people are going to drown."

ThinkorSwim

ES 5. Down to the pivot.

Al_Dente wrote:5/20, yesterday, Bloomberg: small options traders are bullish to a point that signals trouble for U.S. equities, according to Sundial Capital Research.
“Last week, the smallest of options traders, those with trades for 10 contracts or fewer at a time, opened a new record of net bullish positions,” Sundial President Jason Goepfert [of SentimenTrader] wrote in a note Tuesday. In comparison, very large traders, those with trades of 50 or more contracts at a time, haven’t been betting so much on a rally... That has widened the spread between small- and large-trader net bullish positions to a record, with the gap jumping “like it did in 2008” in the past couple of weeks … This has a strong tendency to lead to lower prices over the short to medium term”  he added.

CNBC picked up the story and tweaked it
https://www.cnbc.com/2020/05/21/many-am ... tocks.html

Not sure if the higher low therefore the pullback was over, need a strong bull bar to confirm.

SPY 5. Taking a step above the EMA 20. It could be an interesting close. Or maybe not, relatively quiet day.

Made a quick SPXU trade and staying flat for the weekend.
I want to see VIX 25-26 before I hold SPXU for swing trade.

Well, guess that's it for today. Here's what Friday tomorrow looks like: https://stockcharts.com/public/1684859/ ... /533449397

Thank you guys, I'll see you in another thread soon.

Before the close, please take a little time to vote for me, thanks: https://stockcharts.com/public/1684859/ ... /533449397