Twitter comment this is 3rd third Thursday in a row where the algo's run it up. Last two Fridays also, then a dump on Monday. A low volume day with no expected news events. Perfect for some big funds to squeeze the new shorts.
Gamma stuff, plus our buddy Charlie McElligott, plus OPEX tomorrow.
SpotGamma: "We’d look at any rally as a function of “short covering” vs real buying which could lead to an air pocket into next week." https://www.zerohedge.com/markets/gamma ... to+zero%29
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
It was a successful bump and run pattern. Now let's see how the rebound goes first.
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Nomura's McElligott writes in his morning notes, there is some incrementally “bullish” stuff happening, and the potential for a marketwide
"crash up" is growing
... the biggest reason why the next major move is likely higher, is because everyone is hedged for a crash. As the Nomura strategist notes, the ..."economic reopening/renormalization" theme stays super-strong, and can be seen in the data ...
.. McElligott cautions that the longer we go with no plain vanilla crash, and especially with rates remaining calm and the market’s perceived belief in “a few more months” before Fed would be forced to begin altering the messaging / pivoting towards firming “taper” language, "the path of least resistance locally here is higher ..."
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
spy resistance at the gray gap, stop at the little pink bullish-island gap
qqq box breakout, see cyan target, stop if/when price can't hold the breakout
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
I will buy into risk on if this move continues into next week. For now I trust the numbers that say a low volume short squeeze going into options expiration. 1/3 of the SPX pinning goes away and over 1/2 for the smalls and the tech index. I just don't trust the bulls with the Fed clamping down on money center loans to Family Office funds. Second problem most Robin Hood traders already have their $1,400 so it is probably deployed. Third problem billions in IPO lock ups expiring in tech land. Fourth and biggest, money supply growth has slowed down.
As the songs go "First I look at da purse" or "show me the money".
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Like to read more of my commentaries? Please subscribe my Daily Market Report. Subscribers can find all the members only posts HERE. StockCharts members, please vote for me HERE, thanks.
Like to read more of my commentaries? Please subscribe my Daily Market Report. Subscribers can find all the members only posts HERE. StockCharts members, please vote for me HERE, thanks.