Market Wrap – Option flows, Omicron, Turkey, BBB and Crowd Behavior

In today’s post market wrap live from the Meta trading room traders discussed US stock, options and futures markets after the breakdown over the weekend as last week’s explosive rallies have fizzled out. Listen to our technical and market psychology read on the day. Around the table today we talk about Turkey, BBB, option flows and crowd behavior in the markets, hysteria, geopolitics and Omicron into 2022 with @Mayhem4Markets.

Live on YouTube:

Enjoy live commentary from Our Trading Room at YouTube as the day wraps up – feel free to like and share

Market Closes

  • WTI crude futures fell 3% ($68.66 bbl, -2.27, -3.2%) 
  • U.S. Dollar was weaker across the board with the Yen the strongest. The USD Index fell 0.1% to 96.51.
  • Dow industrial average fell -433.30 points or -1.23% at 34932.17
  • S&P index fell -52.6 points or -1.14% at 4568.02
  • NASDAQ index fell -188.73 points or -1.24% at 14980.95
  • Russell 2000 -34.05 points or -1.57% at 2139.87
  • CBOE Volatility Index closed higher by 6.0% at 22.87 after hitting 27.00
  • Apple $171.62 -$7.62 -4.26%

S&P 500 sector watch:

  • Two of the 11 S&P 500 sectors, utilities (+0.1%) and consumer staples (+0.04%) closed higher.
  • Cyclical financials (-1.9%), materials (-1.8%), industrials (-1.7%), and consumer discretionary (-1.7%) sectors closed sharply lower. 
  • The Russell 1000 Value Index gained 0.5%. 

Markets YTD

  • S&P 500 +21.6% YTD
  • Nasdaq Composite +16.2% YTD
  • Dow Jones Industrial Average +14.1% YTD
  • Russell 2000 +8.3% YTD


In the Treasury market, curve-steepening activity in the Treasury market, driven by a steeper decline in shorter-dated yields versus longer-dated yields.  The 10-yr yield increased two basis points to 1.42% after trading at 1.35% overnight. The 2-yr yield decreased two basis points to 0.62% amid a view that the Fed could still lean cautiously next year given the economic uncertainty of the Omicron variant. 

News Highlights

Erdogan Takes Measures to Protect Turks from Currency Volatility Giving Turkey Lira Reprieve – TRADERS COMMUNITY

With the Turkish Lira in freefall Turkey’s President Recep Tayyip Erdogan announced extraordinary measures to save it from the depths Monday. Turkey is introducing a new program that will protect savings from the prices moves and gave the TRY a reprieve. The lira collapse accelerated with Turkey Central Bank sharp rate cuts. Erdogan vows to win his so called “economic war of independence”. With Turks not affording bare necessities as inflation runs rampant from the collapsed currency and elections in sight push has come to shove.

Nike Earnings Impact from Gross Margin Pressure on Supply and labor crunches. – TRADERS COMMUNITY

Nike report Q2 2022 results after the close Monday. Nike’s business in China appears pivotal with varying reports. $NKE strong digital revenue growth is expected to continue. Eyes are on gross margin pressure with the supply and labor crunches.

Micron DRAM Bit Shipments Shore Up Earnings with Chip Demand – TRADERS COMMUNITY

Memory chip maker Micron report earnings after the close Monday with eyes on the Chip shortage crisis after last quarter $MU lowered guidance. Strong DRAM bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets are anticipated.

US Weekly IPO and SPAC Monitor: Cybersecurity, Cannabidiol and Psychedelics, Cancer and Pregnancy Therapeutics. – TRADERS COMMUNITY

Coming into Year end the IPO market is winding down. This week we have just four IPOs scheduled to raise around $50 million for the week. Cerberus Cyber Sentinel (CISO), Incannex Healthcare (IXHL), Intensity Therapeutics (INTS) and Nuvo Group (NUVO) are expected to debut this week.

Around The Barrel – Crude Oil and Gasoline Outlook For Christmas – TRADERS COMMUNITY

WTI Oil futures have rallied back from the recent dump. Last week EIA reporting a crude draw -4584Kbbl (incl +1294kbbl build at Cushing). Gasoline stocks drew -719kbbl. Utilization rose +.2% to 89.8%. Production Unchanged at 11,700 kbpd.

Into The Vortex – Natural Gas Outlook For Christmas – TRADERS COMMUNITY

Heading into Christmas and cold temperatures around us gas withdrawal season is in swing. While in Europe natural gas futures are back to near all-time highs again US natural gas futures are softer reacting to domestic weather models. Last week EIA reported a draw of -88Bcf of working gas in storage as expected. With the global energy crisis LNG exports continue to grow but we balance supply shortages with deliverability.

Tomorrow US Data, Watch

08:30     Current Account (Q3)

Tuesday Earnings Include

  • General Mills and BlackBerry

Trust you all had a great day, sleep well and get your trading plan sorted.

Any questions please feel free to ask them below. Trade Smart!