Morning Report + UNH Insider Trading + Inflation Data

Day Trading Update 2/21/25

Welcome to the morning report, where I go over the setup for the day as it relates to day trading. I’ll review levels using options gamma and show you where the support and resistance lie along with some other proprietary metrics like options skew that have good track records for forecasting bullish or bearish tendencies for the day.

Let’s see what the day has in store for us!

UNH is down 9% this morning pre-market. Layoffs starting over there. Not surprising - it’s going to be a tough environment for them for a while with a well-deserved, damaged brand. It’s still going to open in between the red bands (pink circle) - compelling valuation here.

UNH Opening in Red Bands

Most recently, we have seen a pretty large insider buy on UNH on Jan 17th around 509 (pink arrow). Obviously, that buy is under water here, but insiders look like they do a good job on UNH when they buy it (not surprising for a morally bankrupt company like UNH). This is a stock that I would be interested in owning over the long term (buy it and forgot it for a year for example).

China was up again last night but Europe and India were a little more subdued.

Yesterday, we got the regional Fed Survey for Philly, and it showed significant increasing inflation pressures. We are so far about 40-50% as bad as COVID as it stands right now. We are hitting levels on this metric that correspond to December-January 2021 (pink circle). That was when the last bull market ended. It was the area where markets all of a sudden understood inflation was “bad” last time around. Markets currently aren’t flinching much, which sets up poorly over the longer term. This is not a joke here - there is going to be a very big surprise for anyone buying growth stocks like PLTR if this continues.