Winding down from a great Thanksgiving with the family and BOOM, Futures are tanking. First it was .5%, then as the night went on we went lower and lower. Friday morning 11/26/2021 we opened up to turmoil in the markets with a massive sell-off. At one point the SPX was down more than 3% and the RUT was down more than 5%. It was blood bath.
Here is what the heatmap looked like that day, Pfizer, Moderna, Zoom and Netflix were the only ones holding on. I thought that was pretty good confirmation that the catalyst for this dump was the new COVID variant going around, Omicron.
Well I would like to say things leveled out a bit since then but it looks like ATR and Implied Volatility are still cranking up as I write this on Sunday morning 12/5/2021.
There were a few moments that looked like we were about to have a big reversal and bounce right back as the market has been doing all year, but each time it was brutally knocked back down.
I am treading very lightly as this market is whipsawing all over the place, taking no prisoners. The SPX has been opening with massive gaps. Been nibbling here and there with some Straddle spreads on the RUT to grab some quick profits, but that is about it. Sidelines.
The poor RUT never really had a chance to follow through on that breakout everyone was looking forward to. Right back in its never ending range.
