Today’s tape was as bullish as I’ve seen in a long time.
Energy, financials, speculative tech, metals — all the offensive groups led higher, with the exception of mega-cap growth.
Industrials and materials resolved major breakout patterns, following through on Friday’s bullish action with new highs.
We made a few moves, but were careful not to overdo it and chase the intraday rallies.
After a quick win in $CVX this morning, we took profits and redeployed capital into fresh trades.
We’re dipping back into speculative China.
We added new positions in Alibaba and JD on Friday, and today we went further out on the risk curve.
VNET Group $VNET is the vehicle we’re using to express this thesis.
The stock is coiling tightly, with volatility at its lowest level since November 2023.
These options are thinly traded, so I sized this as half-positions in two different contracts in an effort to minimize the impact of our buying.
The stock is up 10% the past two sessions, and that momentum has sent it above a handful of key VWAPs– including that from the 2025 high as well as the prior-cycle high.
Put clearly, buyers are back in control across all timeframes, and a new up-leg is likely underway.
So here’s what I did:
I bought the $VNET 3/20 $11 calls for $0.50.
And…
I bought the $VNET 3/20 $12 calls for $0.38.
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