Dark Pool Trader Weekly Review: Prints Predict a Move from Banks

Last week, I spotted some massive prints come in on four financial institutions: Bank of America Corp. (BAC), Regions Financial Corp. (RF), JPMorgan Chase & Co. (JPM), and Morgan Stanley (MA).

Brought to you by INVESTORPLACE Prints Predict a Move from Banks Ahead of the December Stress Test Dear Savio, Last week, I spotted some massive prints coming in on four financial institutions: Bank of America Corp. (BAC), Regions Financial Corp. (RF), JPMorgan Chase & Co. (JPM), and Morgan Stanley (MA). Somebody knows something ahead of the bank stress tests coming up on December 18. That’s why this morning I recommended the Financial Select Sector SPDR Fund (XLF) January 15 $25 Put Options – and will likely be suggesting a few more trades on the financials going into January or February expiration. AAPL Debit Call Spread Last week, Apple Inc. (AAPL) went above the prints, so last Tuesday, December 1, I recommended a bullish vertical call debit spread. You can see on the chart below that Apple is in a big of a wedge. If it can break above $125, it should have a nice rally. This is our key level to watch this week. GLD Debit Call Spread Last week here, I shared with you the weekly chart of the U.S. Dollar Index (DXY) showing you that the dollar broke a major support trend line and that it would most likely move lower. You can see the dollar started to move down this past week to $90.80. This downward momentum on the dollar was bullish for the vertical call debit spread on SPDR Gold Trust (GLD) I recommended last Tuesday, December 1. You can see the gold futures made a nice bounce off the trend line I showed you last week. While we took a 71% profit on half this position earlier today, I spotted more Dark Pool prints coming in on gold last week as well. This tells me the big boys on Wall Street are not done entering into this position. What to Watch This Week Last week I shared with you the key level of $365 on the SPDR S&P 500 ETF (SPY) to watch. The SPY rallied up to around $370. We did not have any heavy levels on the SPY last week. I am bullish above $370 this week. We also had unusual Dark Pool activity this past week on many retail stocks, so be on the lookout for some new recommendations on that sector this or next week. But let’s wait for the splash to end. Now that earnings season is over, I will definitely be churning out more recommendations over the next few weeks. Until next time… Stefanie Kammerman, Editor, Dark Pool Trader To prevent this email newsletter from getting swept up by an overzealous filter, please add our "From" address (customerservice@exct.investorplace.com) to your address book. Comments? Send us an email to feedback@investorplace.com or call us at 800-219-8592. MANAGE YOUR ACCOUNT We hope this timely investing advice is valuable to you. If your email address has changed please email us at feedback@investorplace.com. To manage your email preferences, go here. We will honor your request within 7-10 days. Copyright © 2020 InvestorPlace.com Presented by InvestorPlace Media, LLC 1125 North Charles Street, Baltimore, Maryland 21201