We closed one position on a Short Call Spread for the Diamonds, DIA.. The rest I left on since I think there is more to come. Economic News Entertainment Shows are starting to talk about inflation. Yes, Gold Prices are rising since a while and so did the Bond market.
Copper is falling since a few days. Copper is a leading indicator for construction and engineering. With Lumber prices sky rocketing housing starts will delay and drives prices and inflation up. 17,000 Gas stations on the East Coast are out of Gas and gas prices rising too.
Canadas inflation rate is not too far behind and has risen to 3.4% in April from 2.2% in March.
Read the article here.
The next chart shows you the ratio between Puts and Calls. A number on 1 would indicate that there are as many contracts in Calls as there are in Puts indicating a flat market Sentiment.
The linear Trendline in red indicates a growing negative sentiment in the market. As of today there are 1.70 times more Puts traded than Calls!! People are hedging or betting on a correction IMO, But who am I to know for sure.
Here is the Chart from yesterday when I was saying the market might drop and so it did today
The Qs fell below the Line in the Sand in blue. We will see tomorrow what gonna happen. I expect a bounce off the Resistance Level in blue. It might stay below the Line in the Sand.
The VIX opened sharply higher and the market went into a sell off in the first part and was cooling down to the end. I bought back my winning Diamond position, DIA, and kept the rest alive. VIX went up to 26 in the beginning. We need more!
Inflation is Rising and so the open job positions and with all the free money people dont want to return to work. Lumber prices are sky rocketing and squeezing the construction industry. And the gasoline shortage continues. 17,000 gas station out of gas, WOW!!
Institutional traders might take profits and see what the 12 month Bull market has delivered. Iran and China are challenging Biden and initiating a war in the Middle east. Biden told Netanyahu that Israel should not defend itself. WEAK!
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