Market Overview
The SPY has now posted 6 consecutive closes above the 21 EMA, which sits at 764.73, and today at 765.46 could keep that streak alive but just barely. We pulled back from the 771-773 range and are now sitting right on top of the 21, so this is a spot to watch closely. The 8 EMA at 766.82 is just overhead and price is essentially sandwiched between the two levels into the close. VIX at 16.3 is calm and not flashing any real fear, and the 50 day at 760.39 is rising support not far below. As long as we hold the 21, the trend structure stays intact.
Top Setups — 2 Signals
MU — BULL · MEGA
Calls Bought · Strike: 1080.0 · Exp: Dec28 · 140 contracts · $5.6M
omeone dropped $5.6M into December 1080 calls on MU, and the stock is sitting at 1044.67 with the 8 EMA at 1046.55 acting as immediate support in what has been a strong trending setup. The stack is fully aligned, 8 above 21 above 50, and price is well outside the Fibonacci pocket, meaning this move is not correcting, it is extending. One flag worth knowing, earnings are within 5 sessions, so sizing and timing matter here
.BE — BULL · LARGE
Puts Sold · Strike: 200.0 · Exp: Dec26 · 1419 contracts · $1.7M
A large institution sold 1419 contracts of the December 200 puts on BE for $1.7M in notional, a clear expression that they do not expect this stock to fall anywhere near that level. BE is trading at 263.29 with the 21 EMA at 259.20 just below, and the weekly structure shows higher highs and higher lows with both long-term MAs confirmed underneath. The one headwind is sector, XLI is lagging SPY by over 5%, so if you are trading this you want to lean on the put-sell structure rather than outright directional longs.
