Institutional sweep was a bit mixed on Monday with a bullish lean, action was predominantly bullish in individual names with a bulk of the protection showing up once again in ETFs. Although there was a bit more protection than we have been seeing in selective names, it was expected and we likely continue to see more of it as we enter the heart of earnings season.

We were hoping we could squeeze in another week before earnings flow started to dominate the tape but there was clearly a lot of earnings positioning out there Monday. Not much action in the way of fresh names and new setups as the most aggressive order flow was all in familiar names at higher levels.

$Village Farms International Inc(VFF.US)$ probably is our favorite activity of the day with multiple sweepers on the attack again in Feb and March calls. VFF not even close to being a new name as many of you have likely played it, possibly more than once, especially in last year at much lower levels. VFF probably could still trade higher off Monday's buying as it was impressive, just understand it doesn't carry the same weight as initial buying in the name. Other repeat names to see multiple bull bets and solid buying on Monday include $Qurate Retail Inc(QRTEA.US)$, $General Motors Co(GM.US)$, $Ford Motor Co(F.US)$, $CANOO INC(GOEV.US)$, $Lordstown Motors Corp(RIDE.US)$, $Star Peak Energy Transition Corp(STPK.US)$, $Bristol-Myers Squibb Co(BMY.US)$, $AbbVie Inc(ABBV.US)$.

On the sentiment front

Short term sentiment cooled off to around neutral as the indices found a way to hang on to some red into the closing bell today, for a change. We certainly needed a breather, especially in the indices and some of the hotter pockets of this market.

Earnings season

Earnings season is going to add some confusion and messiness to the picture, as is always the case and if this market ever had any intention to cool off a bit, this certainly would be an ideal time. The market has done a fantastic job of cooling off hot groups under the belly while keeping the indices unscathed.

Let's see if earnings season has any effect on that but regardless, we do have a few things to look forward to for opportunities. Keep an eye on all rotation and reopening plays off any earnings weakness, as there should be buyers waiting to scoop them up with 2 hands. Post earnings flow in general is extremely valuable and worth paying close attention to, rather than actively trading through it, many times it will provide solid clues for the weeks ahead.

Notable bettings toward broader market indices ETF on 1/11

Market-wide option volume of 36.6m contracts was 6% above recent average levels, with calls leading puts 17 to 10. ETF and single stock products saw relatively heavy volume, while index flow was moderate.

Individuals breakdown by sectors (1/11 notable bets)

Most active sectors included Health Care, Consumer Goods and Financials while Consumer Services and Telecommunications were relatively light. Of the 3,683 stocks with listed options, 1,606 (44%) closed higher, and 1,941 (53%) lower. Among the 500 most liquid single stocks, 30day implied volatility was higher for 398 and lower for 69. Unusual total option volume was observed in $NIO Inc.(NIO.US)$, $Twitter Inc(TWTR.US)$, $NVIDIA Corp(NVDA.US)$, $General Motors Co(GM.US)$ and $Marathon Patent Group Inc(MARA.US)$.

Tech

Industrial

Consumer Cyclical

Financial

Communication Services

Healthcare

Energy

Real Estate

Basic Materials

Consumer Defensive

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