Hey Nitro Traders,

Market Commentary:

NVDA earnings are the most important event this week.

Heading into earnings, the normal expected move is about 6.2%. It’s currently around 11%, so they’re looking for fireworks.

However, there are other events that matter. Most notably, today the FOMC minutes get released.

There are also a ton of other earnings coming up.

Basically, the next 24 hours are potentially going to be the most explosive 24 hours for the next few months. I think it could be more important than even a FOMC meeting or CPI.

NVDA has dragged the whole market higher.

Yet take a look at the SPX straddle:

47 dollars – less than 1% of the value of the SPX. It moved more than that on Tuesday WITHOUT a major event.

The near dated selling almost makes premium buying too easy.

Speaking of too easy … did you know I am undefeated in my Zone Trading Strategy?  If not, you should check out my presentation from Thursday. The price discount is over … but if you call my sales team 888 872 3301 and tell them you read my analysis, Ted MIGHT be able to give you the original price.

Pairs I Am Watching:

GS/JPM

There are others in this industry, but these two are so alike. The out-performance is getting really interesting.

Market Update

Update on the relation between the board market indexes and MGK.

GE/HON

This is getting WAY out of hand, this is probably going to be a trade on Wednesday.

Position Updates:

GOOGL/AAPL: GOOGL is closed having paid for almost all of AAPL. We have a downside stop on AAPL calls of 2.00, this locks in a profit.

UPS/FDX: We are out of UPS and are now up money on FDX. One more day and I’ll be looking to close.  We close FDX by Friday.

RSP/SPY: We adjusted the trade, and the SPY side is starting to pay.  RSP is upish, SPY too. If NVDA tanks we probably get out with a profit.

Your Only Option,

Mark Sebastian