Samantha's RECORDED Live Trading Room - 2/19/25

With #LTR Notes - by Samantha, Rithika and Mikey

Samantha’s Live Trading Room Summary - 2/19/25

GammaLab sums up the quant well:

Current gamma distribution for the SPX below. Dealers are selling many futures between 6,150 & 6,200. Thus 6,150 is a strong resistance initially, but once the market breaks into that zone, liquidity will increase substantially (positive) and dealers increasingly buy the dips to delta-hedge their option exposure.

Howevah… I still have my macro/intermarket divergences I highlighted in my yday daily ditty.

Add to that, even before the Fed minutes were released this afternoon discussing that the long-term balance sheet goals favored a curve steepening, my 10Y2Y yield curve started to steepen.

Translation: Market is still in a state of disbelief, climbing the proverbial wall of worry while tightly gripped in its Q4 earnings clench.

Speaking of disbelief… Trump Backs $4.5 Trillion Tax Cut in House GOP Budget Plan.

And here is a great pre-earnings (2/20) read on how Walmart became a beneficiary of the AI boom.

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