Lastly, this is how $XLF opened the next day after this signal went off. In more cases than not, it gapped higher the next day before we began seeing the weakness roll in.
Yesterday, as oil ralled over $100, we saw $USO hit new 52 week highs, and finish up over 5.5% on the day.
$XLF on the otherhand, even though it also hit 52 week highs, it closed red on the down, down about .50%. That 6% point divergence is the largest between the two in 20 years!
What's interesting is that when this level of a divergence happens at 52 week highs, it points to short term weakness in $XLF.
On the otherhand, when this divergence happens and neither stock is at 52 week highs...it doesn't look as bearish for $XLF. The gap needs to be very high >4, for it to point to any weakness. So it looks like being at those highs matters.
$SMH has been outperforming the $SPY over the last 14 days, but is still showing lagging over a longer time frame. Normally...outpeformance by SMH is a leading indicator for better performance for the S&P 500.
$TTWO is now trading below all of the levels it was at before the unofficial and official leaks of GTA VI gameplay. Not a great-looking tape if you're a bull, and the path of least resistance looks lower.
https://t.co/OoKVzmlT9Z
I believe that there is an arbitrage opportunity available with $GME. Last year, GameStop issued $32 warrants to its shareholders, which expire this October.
Those warrants are trading for $1.76 even though the $32 calls that expire this October are trading for 17c.
1/5
On top of that, the most likely outcome for these warrants is that management will allow them to expire.
From where I am sitting, longing the $32 Sept 2027 calls, and shorting the $32 Oct 2026 warrants is a solid play. If GameStop starts climbing from here, then even better for our calls.
I'm still taking the stance that $NKE has not found a bottom.
1) Just because a stock has gone down a lot, doesn't make it a buy.
2) Whatever the stock has traded at in the past, has no relevance to what it can trade to in the future.
https://t.co/4rhV02jeCA
Initiated a position in $BABA today. They reported earnings this morning, and while mixed, once the earnings call concluded, Alibaba was down 6% in the premarket. Once the cash session opened up, it began to get bid back up. 1/3
It seems like a nice place to hang out right now if you're worried about the Nasdaq's performance from here on. It looks like $BABA has been trading better than the Q's for the past month. With today's reversal, that points to a further sign that more outperformance is still to come. 3/3