The weekend video covered our thoughts for the week, where we told members we saw a neutral reading short-term. Intermediate and long-term signals are still bullish. The video is published every Sunday. Judge for yourself.
Summary
SPY Daily
Price action remains above bullish 9 and 21d moving averages, therefore the trend is bullish.
There is a reason why dips are getting bought. As VIX drops, market makers, dealers, and institutions will buy their short puts positions in SPX, SPY, and QQQ as implied volatility (IV) drops. Then, these same participants turn around and hedge by “buying” futures. That produces positive gamma.
“Futures made a few runs to 3330 overnight but were rejected both times, currently ~3315. Notional gamma levels in SPX & SPY declined to present some interesting shifts. The High Gamma Strike jumped to 3400, with 3000 the Top Absolute strike. This is because puts were added to 3300 & 3350, with a decent ~10k chunk of calls added to 3400. Technically this is the bullish “roll” we wanted to see higher”
– Glenn @ spot gamma
SPY vs. VIX
As long as the signal is green, on this 60min time frame, anticipate higher highs and higher lows.
The indicator flips VIX on its head so that it aligns with price action. Green is good, red is bad unless you’re bearish. 🙂
- S&P futures are rising from morning lows.
- Fed speaks at 10:00 AM Robert Kaplan.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.