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Wednesday, December 14, 2022

Sell The News Confirmed On This FOMC Wednesday

 Firstly: How about that gap fade yesterday?! 

The trading day started, on the heels of a better than expected inflation number, and that was enough to gap the market up to a recent highs, which were immediately sold, and that's what we call - in the business - a "gap fade", or the, "fade the gap", trade, than this was one of the best examples... I think, I've ever seen!  

That give back was enough to draw the bearish trading Apes, out of the woodwork. 

#DowJones was even seen trending... of course theses are mostly foreign scam artists pointing to the Dow Jones Industrial index, while trying to draw investors into a telegram, or discord, app. scam.  

 The spamming con artists may not be as powerful as they used to be, but Elon Musk, still has work to do, cleaning up Twitter! 

Speaking of Twitter

If Elon is smart, he will flip Twitter, no sooner than he's done fixing it! 

Getting back to yesterday's gap fade

I suppose that would've got more media coverage, if the lame stream media wasn't so hyperfocussed on the Sam Bankman-Fried FTX, dog and pony show, hearings in Washington, D.C. This is a case of look here, not there, and more proof that the media will run with whichever story the powers that be, want the public to focus on. No doubt this is to make Crypto look bad, in an effort to keep the soon to be extinct US dollar, on life support, for a little while longer. 

Getting to today's trade, ahead of the FOMC announcement, and OPEX Friday: 

Yesterday, I was still scratching my head, over the crazy $VIX action, we witnessed on Monday. See: Re: Yesterday's Highly Unusual $VIX Action Dec. 13th 

Yahoo News even mentioned it: 

VIX Swing Shows Stock Trader Nerves Fraying Before CPI

"$VIX jumps in sync with SPX, on a scale not seen in decades"

Well, as it turns out, some fast money traders have been selling Calls ahead of the Fed announcement, and are planning to sell the FOMC news announcement today, which all makes perfect sense. 

Sell The News Confirmed On This FOMC Wednesday 

I expect to be away from my desk, during today's FOMC announcement, but I am expecting a "sell the news" moment, and we may even see the market close red, on a higher $VIX, which is going to look like a red flag to most traders/ investors. 

$VIX - watch for a gap fill on the $VIX - which was left behind yesterday at the 25 level. It may even overshoot that level, but that is the level to watch. 

As far as Dec. OPEX goes, I would expect to retest yesterday's highs, going into the weekend. 

Take Care, AA  

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