Picking The Pockets

Please click here for a chart of Nasdaq 100 ETF ().

Note the following:

  • The chart shows market makers selling.
  • In the Morning Capsule, we shared with you that today was quadruple witching.
  • Less informed mom and pop in the momo crowd, oblivious to the quad witching, have been aggressively buying call options that expire today. This is the crowd that believes ‘stonks always go up. ‘
  • This crowd doesn’t buy stocks but buys mostly options because in their enthusiasm they do not consider the downside risk.