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DrosNotes - 05-29-2018 - Market Recap


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A recap of the activity in the stock market on May 29th, 2018. Includes unusual options activity, big block trades and some picks.

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DrosNotes - 05-29-2018 - Market Recap

  1. 1. DrosNotes May 29, 2018 Notes On Today “Sell in May, go away”. I’ve ranted about that statement a great deal so I’ll keep this short. It’s an old statement that’s derived from the big money players cutting positions and going to the Hamptons for the summer. However, that’s actually a good thing. These days especially. Algorithms make up around. 75% of the activity on the NYSE these days. So even if they are on vacation…their bots are doing the work for them. It also makes it a stock picker’s market. When ‘the boys’ are around, they’re all over the place. When there’s less players at their can find some great opportunities. Like $FLT today. DrosNotes 1 Top Bull Flow $PIR JUL18 $3 Cs $IMAX JAN19 $26 Cs $UEC NOV18 $2 Cs $FLT AUG18 $200 Cs Top Bear Flow $AGI JUN18 $5 Ps $PFF OCT18 $36 Ps $HDB JAN19 $85 Ps $CX JAN20 $4 Ps $BSBR JUN18 $10 Ps Top Block Trades 4.98m EMLC @ 17.61 4.98m SHYG @ 46.45 4.63m IAU @ 12.48 3.59m BNDX @ 54.22  1.4m $VXX @ 37.75 10m $SRC @ 8.60 679k $MON @ 127.35 1.8m $XLF @ 27.50 1.5m $XLF @ 26.90 2m $GDX @ 22.15 DROSNOTES May 29th, 2018
  2. 2. DrosNotes May 29, 2018 Market Breadth Breadth has been increasing…implying market health now. More participants means that the market is ‘healthier’. It’s not in lock-step with the Indices, so names are being hit and not just because of sector/ index strength. DrosNotes 2 Source: • Oil remains in a bearish trend. I do expect a move up at some point within the next week or two.Wait for some more flow. • $QQQ was the strongest sector today oddly enough. Well $IWM was close to strong too. $IWM has been strong…the strength in the Nasdaq is somewhat suspect. • $EUR/USD flashing buy signal. • $TUR i bought last week; it’s strength has been established for now. [Turkey ETF]
  3. 3. DrosNotes May 29, 2018 Overall, the bullishness of the market has slowed. Not sure if we turn bearish yet or if we strengthen up soon. Some levels to watch…. DrosNotes 3 • Short-term Signals [watchlist these and watch for flow] • $AAL - Buy • $RIG - Sell • $HLF - Sell • $COTY - Buy • $CWH - Buy • $MGI - Buy • $TKC - Buy • $ROST - Sell • $DWDP - Sell • $ASHS - Sell • $GPS - Sell • $NX. - Sell • $ECA - Sell • $ITB - Buy • $EMB - Buy • $SCO - Buy • $XLU - Buy • $CPB - Buy
  4. 4. DrosNotes May 29, 2018 $SPX $2620 [to go bearish] $XAU/USD - $1333 [to go bullish] DrosNotes 4
  5. 5. DrosNotes May 29, 2018 $TLT $117.7 [to go bearish] $CL_F 61.30 [to go full bearish] DrosNotes 5
  6. 6. DrosNotes May 29, 2018 Final Thoughts • This is still a take your profits while you have them on short-term options or swing/day trades. • E-mail me if you want beta access to the new room: • Avoid being married to names you’re trading. If you’re investing in names; watch for some nice average downs on your cost basis. • Trade safe. • “Invest like a gentlemen, trade like a freak.” - Me Be sure to stay posted for more on , & Cheers, - Dros DrosNotes 6