Daily Market Brief

April 3, 2024

Webinar next Tuesday: Why Retail Traders Blow Up: Lessons for Those Finding Their Way! - Register here.

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The lack of liquidity today on SPX and other indices is telling and SpotGamma had an interesting post that I think is worth noting here. What that translates too is that the move off lows was created by ODTE call buying not actual buying of the index. Regardless, $5250 was an area I discussed in the recap last night and we held it off open and with a $20 point rally there end of day.

Most of this action is just awaiting data Friday it seems and you need real buying to get any of this to move. Given the game in the markets right now is options manipulation the “big move” like comes Friday.

The clowns in Washington decided not to fill up the SPR from reports released today which makes the job of Jerome Powell and The Fed that much harder. In some sense, you have to feel for the guy (or maybe not) given the job he and the rest of them have ahead with a Government that is hell bent on proving their incompetence.

With that $VLO - which was an AST Portfolio Alert just hit a new ATH again today at $182.73!!! Massive win for the books and subscribers. (You can get a 21 Day Free Trial here) Congratulations to all of you long energy and even more those with the patience to hold — I know many of the other gurus like to be late to the party and pretend they were not but this has been a theme since last September.

If you missed it, there are new commodity longs in play in Q2. I gave comment to Reuters and US World Report yesterday on both and will link the articles here when published.

Moving on…

$BABA - a stock that I have traded since the IPO repurchased $4.8B of shares last quarter and the stock is stagnant. I saw that release a long with everyone else and normally you’d get me jumping all over that but I refrained. Why? The technical did not confirm and I believe in a Top Down Investing Approach. I am aware that the other children on campus shun technicals but they work when done correctly - the good thing for you as a reader is I use them correctly and we’re close to an entry on that here soon.

BABA IPO 2014 at my office when I was a Portfolio Manager