Options Montage: A neutral short-term sentiment heading into today's quad-witch expiration

Moomoo News · 2021/06/18 08:17 · 特ダネ

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By Eli, Jimmy

Bullish price action saw in Tech and Growth names under the belly on Thursday, plus there was an unwinding of Financials, materials and commodity plays. Institutional sweepers made it clear where their focus was going to be on Thursday by annihilating short-term calls in AMD right off the opening bell, insane activity in the semiconductors play which is currently on many players' DO NOT TOUCH list. AAPL PINS U also saw active sweeping activity, BILL coming off solid august flow accumulation had another solid session today.

On the sentiment front

Because of the unwinding of all the "inflation" positioning out there, the intraday sentiment was held down for most of the early part of the day, even as Nasdaq's high growth names were on fire. Short-term sentiment landed on a Neutral territory heading into today's quad-witch expiration.

All we have to do is look at positioning and sector sentiment to understand what took place out there yesterday, it's no coincidence that commodities were just labeled the new "most crowded trade", only to see it blow up right in their faces. Do you remember what commodities replaced as the "most crowded trade"? Bitcoin, right before bitcoin had its own blowup. As far as sectors are concerned, energy and financials were overdue for a washout, banging their head in overheated territory for a bit now. Now on a shorter-term basis, tech has been heating up and approaching poor risk and reward territory, while groups that were once scorched have rinsed considerably.

So we could see this reverse a bit next week for trade, for Tech, it feels like that applies more for big tech as we could see underbelly growth still outperform a bit. Next week should be a fun week, quad witch and the FOMC will be in the rearview mirror, and there has been a decent amount of de-risking from the players this week, usually, those are some key ingredients for bullish action.