Hey there traders,

This week was unique.

We saw the market hit an all time high.

At the same time, the NYSE gainers and losers were negative.

I have never seen a market like this.  In fact, breadth has only been this week on a new all time high…

4 times…

…EVER!

There are 5 stocks going up and the rest of the market is going down.

SO what does this mean for stock and options?

Take a look at the VIX

Does it seem like it is expecting the market to go back to normal?

The answer is a firm no.

The market is pricing a bad market after September expiration rolls off.

In fact VIX saw an increase in call buying, that while not drastic, was clearly showing someone building their hedges.  Particularly the Jan of next year, out of the money, 40 calls.  It’s not a panic bid but the paper is being worked.

I would be wary….

Your Only Option,

Mark