SPY continued grinding up.
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| SPY 5m |
It's obviously overbought, but the market can stay overbought longer than we think...
Market Overview
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| $NYAD |
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| $NYHL |
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| SPY:RSP |
$NYAD continued uptrending. Advanced=2309 Declined=724
$NYHL cleared recent resistance and next target would be 1σ=195.
SPY:RSP ratio declined. Notice the difference between the rally in last October and this time. In last October, both SPY and SPY:RSP ratio surged which means less stocks participated to increase the index and it wasn't sustainable. This time, SPY is increasing while SPY:RSP ratio is declining, which is opposite to last October's rally and I believe it is sustainable this time.
Trend, overbought, and oversold.
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| $SPX CVI |
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| SPX STVO |
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| $SPX VTO |
SPY Climatic Volume Indicator is hovering around +1σ. SPY is near overbought level in very short term.
SPY Short term volume oscillator is approaching to +1σ as well. SPY is near overbought level in short term.
SPY Volume Trend Oscillator is now 50 and exceeded +1σ, however, SPY can stay overbought level after VTO exceeds 50.
SPY Options and Big Trades
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| SPY OI 03/04 |
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| SPY DWV 03/04 |
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| SPY DWV 03/11 |
As we reported yesterday, there were HUGE 0304 SPY 195.00C buying yesterday and it looks like that trader still holds that position. As of today's close, that 195.00C is priced as $4.70 and that trader bought 195.00C at $3.40, which means his unrecognised gain is now $3,841,500!! Holy s**t!
We have no idea how the market reacts against non-farm payroll data tomorrow, this trader will definitely sell his position tomorrow for profit taking, unless this trader is enough weirdo who wants to buy 2955000 of SPY ETF
We stay bullish but we expect some degree of pullback tomorrow.
Happy Trading!
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