By Eli, Tommy
Earnings positioning starting to dominate the tape, still a good amount of good-looking bull bets out there but obviously difficult to trust being earnings season.
Tech sector ETF sentiment source: sentimentrader
Rotation into tech was the most aggressive activity over the past couple of days led by $Apple Inc(AAPL.US)$ institutional sweepers, interestingly enough, Tech one of the few sectors not overheated entering the week.
On the sentiment front
short-term sentiment cooled a bit, although the BOA Bull/Bear indicator unchanged week over week, remains elevated. NAAIM sentiment which measures advisors and portfolio managers up at bullish extreme levels, AAII investor sentiment cooled a bit, adding a few bears.
We still have plenty of intraday opportunities out there, from FAANG action to small penny stock pumps. It's the overnight risk that has increases here based on elevated short-term sentiment readings and earnings season risk. Some speculative pockets starting to see a few cracks, something to keep a close eye on. Often it can be a prelude to overall market weakness and no better time to play less and watch more than the start of earnings season.
Notable bettings toward broader market indices ETF on 1/21
Market-wide option volume of 39.0m contracts was 5% above recent average levels, with calls leading puts 13 to 7. Single stock and ETF products saw relatively heavy volume, while Index flow was moderate.
Individuals breakdown by sectors (1/21 notable bets)
Most active sectors included Technology, Consumer Goods and Consumer Services while Utilities and Telecommunications were relatively light. Of the 3,702 stocks with listed options, 1,279 (35%) closed higher, and 2,314 (63%) lower. Among the 500 most liquid single stocks, 30day implied volatility was higher for 261 and lower for 204. Unusual total option volume was observed in $Ford Motor Co(F.US)$, $Intel Corp(INTC.US)$, $Zynga Inc(ZNGA.US)$, $Netflix Inc(NFLX.US)$ and $FuboTV Inc(FUBO.US)$.
Tech
Industrial
Consumer Cyclical
Financial
Communication Services
Healthcare
Energy
Real Estate
Basic Materials
Consumer Defensive
Utilities
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