By Eli, Jimmy
This week with a super dovish Fed plus incredible earnings were mostly already factored into prices. Most of the decent moves in select names have been over those earnings and you would've needed to take that added risk and juiced-up Implied volatility to benefit.
Full positioning, yet a lot of index hedging has created an environment where higher gaps will find sellers and any downside momentum will likely be difficult to sustain. But there still is that added risk of those "orderly" pullbacks based on overbought conditions.
As we punch through next week after a big week of earnings in the books, we will start to see order flow clear up and make some sense again. Hopefully, as it leads to less hedging out there, we can get a read on how institutional sweepers may be positioning into what is known to be a poor seasonal period(Sell in May and Go away?)
End of the month positioning and a Friday expiration today, so price action can continue to be a little volatile. We likely see a little selling off the open that can hopefully free up a few tactical intraday opportunities to take advantage of.
Notable bettings toward broader market indices ETF on 4/23
Individuals breakdown by sectors (4/26 notable bets)
Tech
Industrial
Consumer Cyclical
Financial
Communication Services
Healthcare
Energy
Real Estate
Basic materials
Consumer Defensive
Utilities
