Updates for Monday 11/8/21

We trade 3x ETFs such as TQQQ TNA SOXL LABU UVXY using proprietary analysis of volatility.   

Updates 12:00 AM EST - Monday 11/8/21

Key dates
Here's the economic calendar for the full week.   

Tuesday:   Producer Price Index (PPI)
Wednesday:  Consumer Price Index (CPI)
Friday: Consumer Sentiments; Job Openings (JOLTS)

• Powell is scheduled to speak on Monday at 10:30 AM EST, as well as Tuesday.
• US bond market is closed on Thursday for Veterans Day, while stock market remains open.
• November monthly options expiration (OPEX) is next Friday 11/19.

Here are the companies reporting this week including PYPL, TME, COIN, DIS, DHI, PLTR, TCEHY.

​Volatility
There is no guarantee in any pattern, but keep an eye out for the following pattern that $VIX $VXN $RVX may follow.

1. Minor volatility spike up above $VIX $VXN $RVX 200-hour EMA green line early this week as shown below. This may cause stocks to have a minor dip early this week.
2. Volatility then drops down below the 200-hour EMA green line briefly 
3. Bigger volatility spike around 11/19, but not a huge one. This means a possible moderate dip for stocks, but not as big of a dip as September.
4. Volatility then drops down below the 200-hour EMA green line as stocks resume the year-end rally.

​Equity Put/Call Ratio 
In the P/C ratio 30-minute chart below, keep an eye on the 200 green line.   It needs to flatten and go sideway for a few days before it can really spike.   So for right now, it is bullish. 

When this ratio spikes, it means traders are buying more puts than calls in an effort to hedge.   That's more bearish.

Advance-Decline Net Issues >> bullish
NYSE and Nasdaq A/D lines are still above their 200-hour EMA on their cumulative hourly charts.  Overall message is still bullish.

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​Seasonality >> bullish
Statistically, this is a bullish period of the trading year.

Positive gamma >> bullish
Gamma is positive right now for $SPX $NDX IWM.   This means that dealers are hedging their books by buying into weakness, and selling into strength.  The net effect is supportive of a steady march upward, without outsize swings.

Short-term Key Levels
The table below has been fully updated.

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Disclaimer
The information presented here is our own personal opinion.  Consider it as food for thought.  We are not offering financial advice.  We are not promoting any financial products.   We are not registered financial advisers or licensed brokers.  We make no guarantee that anything will unfold according to our projections.  You are proceeding at your own risk if you follow our suggestions.​​​​​​​​​​​​​​​​

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