Bounce Hard or Trounce Hard: That is the Question
Macro:
Please don't miss: US Treasury Dump Should Not Be One of Market's Mysteries
Intermarket:
Please don't miss: My Key Intermarket Charts from my live trading room this morning
Flows:
As posted under #macro-to-micro-support earlier this week:
Projected flow from volatility targeting funds is basically a big sell or sell here. No matter what the market does.
We are moving into deeper short gamma as the market moves lower. Dealers are busy buying high and selling low, magnifying all moves.
Sector Rotation:
Forced selling continues in sectors normally not succumbing to forced selling: XLV is the latest.
Bitcoin rolling over and Volatility moving up - as expected - means be even more careful with your longs on any timeframe!
That Growth-to-Value rotation is rolling over on cue as MAG8 7/6/5/4/3/2/1 get hit.
Energy rolling over on cue as well while...
Gold higher on war vibes again as markets still can't find their capitulation lows.
Micro:
Mondays have been typical gap down events to buy long enough for VIX to get crushed.
One of these Mondays it won't work out like that.Problem is, as I discussed this morning in my trading room, COMPQ is at a D/W/M inflection point as displayed in my COMPQ:SPX chart as well.
Translation: BOUNCE HARD OR TROUNCE HARD: THAT IS THE QUESTION...And with stacked options at $400 SPY, it is hard not to see this as magnet IN TIME.
Breadth is still crap and net buying has not entered the building.
Since I warned September 18th - "VIX. It's Time": HYOAS has risen 20% while VIX has risen 90%.
Translation: Equities can sell-off from oversold. That's where flash crashes are born.Pls don't be complacent!!
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