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.
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
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