This has been an active week, with SPY above 312 highs, the expected move with airlines, renewable energy, and watchlist stocks performing quite well. Airlines are hot again this morning, with UAL (+6.00) and AAL (+4.00) going into the open.
SPY and NFP
Non-farm payroll (NFP) numbers were better than expected, pushing futures higher. As a result, shorts are covering this morning, and SPY is gapping above the March pivot high (313.00 +/-) where the markets reversed and moved lower (arrow). The 161.8% Fibonacci level is next.
MACD and RSI are bullish. Consider scaling out of big winners going into this week that are trading at 52-week highs. Example: Zoom (ZM) is up 220% from the January levels. we shorted ZM yesterday, for a day trade and kept a few puts for the more bearish price action this morning. ZM is down another (-7.30) going into the bell.
All things considered, we’ll take the SPY calls off for a profit this morning.
Spotgamma update: Support at 3100 into June, with a break in bull trend and higher volatility not anticipated unless we break 3050. 3150 is current resistance. Higher gamma levels suggest the market is fairly well supported.
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