Yo, Pit Crazies,
SL: I was wrong, markets are still worried about inflation.
Subheading: Yet another CPI number
Yo, Pit Crazy,
I spent most of the day Thursday lying on my couch with my laptop, lurking in the Pro Chat Room, with my voice shot from the flu.
Day 4 finally took me out, but I am feeling better now.
I wasn’t the only one knocked off my feet – so was the market after a heady week of bounces.
One of our long-time pros seems to be getting the drift:
Discipline is best, and this week the market has a bad case of The Clash …
“Should I stay or should I go?”
What is the implied vol telling us?
CPI Number Is Once Again Freaking Folks Out
Note the very high Sigma on Feb. 14 when the CPI reports …
That’s nine vol points above Feb. 13, discounted for the weekend. Still a very high number and a symptom of how stocks will trade between now and then – choppy!
As much as I thought we are shaking the inflation narrative – and by that I mean JPow is going to do what he says he will do – each new announcement is a powder keg of movement and that is what we have until it changes.
With the number coming in lighter every cycle, SPX has been bouncing hard. In the meantime there is doubt and indecision.
I think SPX will bounce again next week after the number. As it has since mid-October.
The Rundown: What’s Trading at Option Pit
Big Money Flow
Mark closed the Lithium Americas Corp. (Ticker: LAC) Feb. 17 25 calls for a 68% gain.
To Your Trading Success,
AG