To The Moon

Stocks in the U.S. market on Thursday (21 Sep 23) trading close lower. We saw Treasury yields rose. This is second day of a weak market action after Fed FOMC announcement.

Though Fed has held the interest rate steady on Wednesday (20 Sep 23) but Fed officials are expecting to keep them high for longer than what market has previously anticipated. We saw all 11 sectors of S&P 500 closed in the RED.

With the “higher rates for longer” message clearer, I would think there will be little hop for a soft landing or rather would prepare for more declines in growth.

All three major indexes fell; the Nasdaq Composite was down 1.8%, while the Dow industrials dropped 1.1%, or 370 points. All three major indexes have fallen for three straight days.

U.S. jobless claims announced Thursday (21 Sep 23) for the week ending 16 Sep 23 were 201,000, which is below Wall Street expectations of 225,000.

In this article I will be sharing and looking at the options data as of 22 Sep 23.

Top 3 Stocks By Highest Percentage Calls (22 Sep 2023)

Refer back to what I have shared yesterday (21 Sep 2023), Evaluate Daily Options Data For Potential Trade (21 Sep 2023).

21 Sep 2023 - Top 5 Stocks By Highest Percentage Calls

It looks like $Amazon.com(AMZN)$ still remain in the Top 3 with %Calls higher than %Puts, but it did not fare well yesterday having drop more than 4%.

So now I think we would need to carefully consider what the options Calls can be used, we can see an increase in Daily Volume %, which the difference between %Calls and %Puts have dropped.

Does this mean that we will be expecting a further drop in Amazon stocks today (22 Sep 2023)? But do consider other indicators before we plan to trade.

Amazon - 50 Days Moving Averages Status

Amazon went below 50-day MA period, even though we can see that there is interest coming based on the %Calls, it could still mean that this stock might be trending lower today.

This could be an example of how we can always use technical indicator to check and confirm if what data is telling us.

Top 3 Stocks By Highest Percentage Puts (22 Sep 2023)

If we look at how the %Puts have changed in terms of the stocks, though $Nikola Corporation(NKLA)$ still remain among the top 3.

And Nikola %Puts have increased on 22 Sep compared to 21 Sep, which mean that market is bearish on this stock. It has dropped more than 6% yesterday.

Let us take a look how Nikola is trading on its 50-day MA.

21 Sep 2023 - Top 5 Stocks By Highest Percentage Puts

Nikola - 50 Days Moving Averages Status

Nikola have been trading below the 50-day period since more than 50 trading days ago, this would mean that it have been on a bearish trend since.

But if we look at the 50-day period MA chart again, Nikola price currently touches both the 50day and 200day period.

Could it rally towards the end of September 2023 because that is when they will be delivering their hydrogen fueled truck?

I would continue to monitor the price action today and next week as I see some potential on Nikola going higher towards end of September 2023.

Alphabet (GOOG) turns from %PUTS high to %Calls high

Another stock we might want to look out is $Alphabet(GOOG)$ (you may refer to the chart on %Puts for 21 Sep).

Alphabet was having the 5th highest %Puts on 21 Sep 2023 to among the Top 3 in terms of %Calls. This is quite a huge jump in sentiment.

Below is what I have gathered about Alphabet, which might explain why the market is increasing the %Calls for alphabet as compared to one day ago.

Alphabet has indicated that they are not changing the relationship with Broadcom as what media earlier reported that Alphabet might consider dropping the chipmaker, Broadcom as supplier of artificial intelligence chips as early as 2027.

But I think we should still watch the price action of Alphabet today as yesterday we can see big tech stocks are being impacted by the fading of rate cuts hopes.

Summary

As I have shared, I think there are more indicators and analysis we need to do in order to determine if the stocks is to be traded for long position or short position.

As always, options data should be use as part of the evaluation to build the trading plan.

Appreciate if you could share your thoughts in the comment section whether you think the stocks mentioned is worth looking into for today (22 September 2023) trade?

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.