The New "Pump and Dump"

We asked for it we got it. A great recovery day, until it wasn’t, and that happened in the final hour of the day. The day was a heck of a wild ride at any rate, even if it was nothing more than a “Pump and Dump”

There’s a ton we could unpack here today but I’m going to stick with some basics. As I mentioned earlier this morning safety and caution are still warranted. Investors are probably a little motion sick today but astute traders fared well. Those that took a nap today probably did so on the Pump then woke up to the Dump, not the kind of a day to snooze.

NVDA is back in play, we’re loving the look on this chart after it’s bounce today, it closed up 3% which is less than ½ of where it was being up 6.87% today. If this rally does continue will lightning strike twice like it did for the JUL 19, 2024 140 Strike Call Options? Today it was strong with over 74,000 contracts at the 120 Strike for AUG 16, 2024 VS the Puts sitting roughly around 54,000. Granted not close yet in comparison to the activity we had back in JUL but not too shabby. Matching JUL 19, 2024’s Options activity will not come easy, if it ever does again.

GE performed well for us today, very well…. Both with common stock and Options. We will be adding more if it holds these levels. We continue to add on signs of strength with it. AMZN, it’s no secret we here at investingwithfaith.com are biased on this one as we have owned it as a core position for a number of years. This price area is shaping up to be a add on for new plays.

This morning I spoke about SPX Gamma being at 5,200. Traders that took that area today were rewarded handsomely at it breached 5,300 for a while before retreating back down. The S+P still finished up at 1% on the day but was up 2.38% at the high. That move afforded many Options traders 100% gains on oDTE’s today before the selloff. Traders caught both directions today as the movement continuously hit set price levels throughout the day.

The markets these days are different, we now have algos, dark pools, Options that move the price of stocks. Today went to the traders, and though we did do a Pump and Dump, the bulls still came through.

Invest wisely, live charitably and be well

Brother Bill