It all comes down to CPI…If we look at the past month of data I don’t know if we can/should expect a cooler than expected CPI. It doesn’t mean that the market can’t find a level of support to rally out of like we had today. At this point it is clear market makers and the FEDs are propping the market with 0DTE options and wanting the market to buy calls and crush vol. This is why we continue to trade sideways in a kangaroo market and for anyone expecting a nice clean trending day I am sorry to disappoint I don’t think we will see it. Thus, mark the key levels, review the trade plan and be ready to act based on the data.
Another great post! Quick question, how did you determine 3885 is where dealers buys above and 3830 is where dealers sells below under gamma?
The Delta-adjusted gamma - DAG exposure line graph. Positive = buy. Negative = sell.