IP Update
Its been a crazy few weeks for IP.
Earnings came out and were good. Immediately we saw a sell the news event, heavy institutional selling drove the stock down to support.
The within the last 4 trading days we saw a gap down (which was heavily bought up) and a gap up which was sold off.
Note the volume on the gap down vs the gap up. The buying after the gap down was heavy volume, whereas the volume selling after the gap up is light.
The gap up as well was on a huge sector rotation day in the overall market.
I feel we have two scenarios forward. One is the gap from yesterday gets closed and then the trend up may continue. Gap close has almost already happened today and may still yet.
OR we see more selling pressure driving the SP down to support again before a big buyer steps in again.
I kind of think option 2 is more likely given the big swings we have seen recently .
The market is overall very bullish, and there are clearly some very big buyer/seller moving a ton of money through the stock. More than day traders in my view. A day like last friday had something like $150 million dollars that changed hands.
I sold off some of my OTM calls yesterday to reduce my position. I did not have the best entry on those and wanted to reduce my risk in the position. Will ride it out with the rest.
Earnings came out and were good. Immediately we saw a sell the news event, heavy institutional selling drove the stock down to support.
The within the last 4 trading days we saw a gap down (which was heavily bought up) and a gap up which was sold off.
Note the volume on the gap down vs the gap up. The buying after the gap down was heavy volume, whereas the volume selling after the gap up is light.
The gap up as well was on a huge sector rotation day in the overall market.
I feel we have two scenarios forward. One is the gap from yesterday gets closed and then the trend up may continue. Gap close has almost already happened today and may still yet.
OR we see more selling pressure driving the SP down to support again before a big buyer steps in again.
I kind of think option 2 is more likely given the big swings we have seen recently .
The market is overall very bullish, and there are clearly some very big buyer/seller moving a ton of money through the stock. More than day traders in my view. A day like last friday had something like $150 million dollars that changed hands.
I sold off some of my OTM calls yesterday to reduce my position. I did not have the best entry on those and wanted to reduce my risk in the position. Will ride it out with the rest.
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