Net Options Sentiment Plunges

9/5/24 Prospero.Ai Investing (152nd) Edition (Midweek)

The only major news is that we saw both QQQ and SPY Net Options Sentiment hit 0 yesterday. Which is a highly Bearish sign.

However, since the market has been so volatile we are not pushing the full panic button. That being said, we already flipped more Bearish than Bullish in our portfolio.

We will share our full momentum score below but one stock we wanted to highlight is PCVX. It was by far the top score in the Momentum Score at close yesterday and is already up 3% pre-market. If you’d like to follow our Momentum Score, our Trading Letter releases it most market days.

Some general advice we’d give in this market is along those lines. Take Momentum more seriously with high volatility. A 2% red morning could turn into a 10% red day quickly (or vice versa). So as we did with PCVX yesterday (where we went a little lower on Upside and much lower on Profitability than we normally would) it is helpful to balance risk by being more sensitive to what the market likes or doesn’t in real time.

A WORD FROM OUR CEO 

Another volatile week but we are well-hedged and beating the S&P 500 by 68% annualized, with a win rate of 60% against SPY benchmarks. 

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Net Options Sentiment Plunges

Market/Macro Update