Loads of tech and growth names have been lighting up my scanners this week, including cybersecurity company NortonLifeLock ahead of its earnings event.
The beaten-down cybersecurity stock has seen its shares plunge over 20% since mid-March, but the bulls came charging in to buy the dip early Wednesday.
Big money trades loaded up on over 720 contracts of the Aug. 19 $23 calls for around $100,000.
On top of this being a rare stock to see big option flow, the calls also capture the company’s July 26 earnings event.
Of course that’s not the only name seeing unusual activity…
The major indexes closed up on Wednesday afternoon, only to open lower Thursday morning.
And this speaks to a pattern I’ve noticed with the last four or five big reports — the U.S. economy is trying to shrug off negative information, but the global economy and in particular the European economy are having a harder time digesting the data.
The U.S. market will often trend higher following a negative report. But once the data catches up to the European market, their indexes sags, causing the U.S. market to then dip lower overnight and into the following morning.
We also had two more reports on the schedule for Thursday — jobless claims and the Producers Price Index (PPI). Jobless claims have been within the four-week moving average, so I’m not expecting any surprises there.
The big report is the PPI. This is going to tell us how inflation is affecting producers, and might give us some indication of whether or not inflation has truly peaked…
A Gap is a break between prices on a stock chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. In general, gaps occur at the open of major exchanges. Opening gaps result from a newsworthy event that happens after trading is over, which has an effect on the price of a security. This effect outside of trading hours results in an imbalance in supply and demand when the market opens the next day, thus leading to a gap.
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