Coiled Spring Capital Mid-week update 4/20/23

Last weekend we wrote that the market likely consolidates given the lack of market moving news flow. So far that has rung true. Last Friday the SPX closed at 4137 and today we closed at 4129. Narrow ranges typically set up a for a larger move. If you have been reading our weekend report, you know which way we think this breaks. More on that below.

Some quick housekeeping. We exited our $XLF trade yesterday at $33.50 for +8%. This in the vicinity of where we wanted to sell ($33.80). The 9 sell will likely print tomorrow. We may revisit this if we can get a better price.

We are also no longer involved in $LI as it broke the 200 and 50day today, and exited for a -4% loss. The Chinese stocks are abnormally heavy as of late and we will stick with $NIO as it is a longer-term idea for us.

So which way do we think this impasse resolves?

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