Here is an update of the four indexes I mentioned in my blog over the weekend. The SPX has basically done nothing, but is holding onto recent gains extremely well. The financials (XLF) and the biotechs (IBB) have also gone sideways as some of the momentum names take pause to consolidate last weeks gains. The IWM has broken out and making new highs. So far they all still look good. And finally, social media names look like they are ready to get moving again.
The following is open interest for Friday, November 29th expiration. I presume most of the action tomorrow will occur in the first hour. Keep in mind with these open interest graphs that the low volume environment we likely see tomorrow can lead to more volatile conditions than normal. And as a reminder or to any new followers, use these as an asset to your own technical analysis and plan…they are meant to help you gauge risk, not as a guarantee prediction.
SPY: We closed outside of the 179 to 181 high open interest range. If we open still above 181 and push higher, we have a better chance of staying above 181 and moving even higher as calls close out and delta hedgers buy more to stay neutral.
AAPL: When AAPL takes out its highest open interest calls (a rare occasion) and pushes the strikes out it is SUPER bullish. The new high open interest is at 550. Look for resistance there, but if it takes it out in stride, then the sky and the 1:00 pm closing bell is the limit.
AMZN: New closing high and doesn’t face open interest call resistance till 395. Right now it’s sitting in the open interest range of 265 to 395.
BIDU: After Tuesday’s run it took a little break and most likely does the same Friday if it can’t get over the 165. Open interest range 155 to 165.
GOOG: I was bullish on GOOG going into the week and still am. The open interest is often not relevant on GOOG, especially when it’s already over the high calls as in this case.
LNKD: There are a lot of open calls at 225 and 230 so risk/reward really isn’t there for Friday’s session unless it takes it out very early on and stays above it.
NFLX: Really nothing in the way of this going higher.
PCLN: Monster. Highest calls at 1200.
TSLA: It definitely appears it’s trying to get back to its normal way of moving up, but be weary of the high open interest at 129 and 130. On the downside, 120 should keep it up and if it wants to cause the most harm then a 125 pin would do it.
TWTR: Just week number 2 of options. Let’s see if it wants to pin to cause the most pain, which would be at 41.