Entering text into the input field will update the search result below

Filling Gaps

Dec. 07, 2021 7:21 PM ETThe Boeing Company (BA), GM, GS, QQQ, RSP3 Comments
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Growth, Long/Short Equity, Momentum, Macro

Seeking Alpha Analyst Since 2014

I am Michael Kramer, the founder of Mott Capital Management and creator of Reading The Markets, an SA Marketplace service. I focus on long-only macro themes and trends, look for long-term thematic growth investments, and use options data to find unusual activity.

I use my over 25 years of experience as a buy-side trader, analyst, and portfolio manager, to explain the twists and turns of the stock market and where it may be heading next. Additionally, I use data from top vendors to formulate my analysis, including sell-side analyst estimates and research, newsfeeds, in-depth options data, and gamma levels. 




Mike’s Reading The Markets (RTM) Premium Content – $45/MONTH OR $400/YEAR – The First 2-weeks are FREE to try AND get 20% off!

Stocks jumped again on December 7 as the VIX fell back to 21.9. This type of price action coupled with implied volatility move lower suggests a short-covering rally from oversold conditions. The move lower in the VIX means that traders were likely closing out put positions which led to market makers buying S&P 500 futures.

But I won't expect the VIX to drop much more from these levels. The front-end of the term structure fell sharply, the rest of the VIX structure moved down less. Suggesting the market is still anticipating higher volatility in the future.

The volatility dump helped the S&P 500 to fill the gap at around the 4,695 area finally, we had spoken about in the past. The pattern today looks a lot like the pattern from November 29 and a few patterns we saw back in September. Most of the time, we have seen the S&P 500 give back the gains and fill the gap at lower levels, which would be around 4,600, with this type of pattern.

Nasdaq (QQQ)

I have been working on something new the last few "weeks," and I thought I'd try it out tonight. It has worked reasonably well in the Asian markets, so I will give it a shot. The box in the QQQs suggests the ETF falls back to and fills the gap at $386. If it works, we will see.


The gap in the RSP also filled the gap today. The ETF tried to take out the gap but was unable to. The RSP was very sold, falling below 30 on the RSI and the Bollinger band.

Goldman (GS)

Goldman also filled the gap today but could not push beyond it. The trend here remains bearish at this point.


The gap in GM was also filled today, with a lower trend still in place.

Boeing (BA)

The gap in Boeing was also filled today, with a solid downtrend still in place.

That's all today.


Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future results.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.