Yo Pit Crazies,

Stay tuned for the Easy Button using our Edge Hunter sheets next week. 

In the meantime, check out Mark at our partner Money Map Press on Thursday.

Year lows in anything are significant. Year lows in the one the best Private Equity listed vehicles is more significant.  Blackstone Inc (Ticker: BX) has outperformed the SPX over the last 2 years.  By a lot.  Now the bloom might be coming off firms that need low financing costs to make big returns.

BX versus SPY since 2021.  BX is the chart with 1 day candles.

What were the peeps doing on Red Monday?

Selling puts in BX, that is what!

Mark and I have notice lots of bearish flow in the financial engineering company like (Ticker: AGNC) this last week.  It appears after the 3% face ripping rally that financial companies and the inverted yield curve, see Bill Griffo’s latest missive, are giving folks the jitters.  BX has a massive real estate fund that has folks nervous and redemptions picking up steam.

BX Dec09 volume for Monday, Dec05

Imagine my surprise when a customer stepped up and sold 5000 of the BX Dec09 80 puts Monday.  In the parlance that is a Line in the Sand put.  Cross the line, and the trader owns some BX somewhere south of $80.  That is bold in my view as all the financial stocks are soft after some solid outperformance in the S&P 500 this year.

This is one to wait on  but until the yield curve rights itself, financial stocks should stay weak. I think we can see more financial stock weakness..

The Rundown

Capital Gains

Bill and I waited for the metal rally but is stalled so we closed the Silver Trust ETF (Ticker: SLV) Invesco QQQ Trust (Ticker: QQQ) Dec02/Dec16/Nov18 19/20.5 call vertical, 21 calls, 275/265/255 call butterfly closed for a 10% gain.

To Your Trading Success,

AG