A simple moving average is a lagging indicator that technicians use to help with the trend recognition process. It smooths out the erratic day-to-day action and shows us the mean price over a stated period.
Today's trade is a similar bet to yesterday's trade. With $VIX in the 20s and big caps putting in short term bottoms at key pivot points, these are opportunities for opportunistic put spread sellers.
Last Friday, Steve asked me to send over the most bearish charts from my chartbook as a good exercise in playing devil’s advocate internally with the team.
Today's trade is in a stock that recently announced earnings. The reaction was muted, which I think is a good thing. It left the chart sitting right where I'd like it to be, holding the recent lows of a 4-week pullback.
I came down with a pretty bad cold this weekend. Most of my Sunday was spent quarantined in my office so I wouldn't get my kids sick (4yr old and twin 2yr olds).
Of course, rather than laying in bed resting, I was in my office looking through...
