WEDNESDAY’S FLOW NOTES

“Earnings flow” is in full effect my friends as Wednesday’s action had a really sloppy look .. As we discussed recently, this has been expected & it’s important to remember that it tells us absolutely nothing in regards to smart money sentiment going forward .. For now, the order flow should be used as a signal for intraday momentum .. Sloppy/mixed flow should be interpreted as choppy price action or a lack of momentum (again, I repeat, solely for intraday purposes)… From time to time, we should see pockets of 1-sided aggressive sweeper activity, bullish or bearish .. You know, where bands of sweeps flow in attacking a handful of names .. As most of you know by now, that’s the best type of activity for creating momentum .. Many times it will come off positive or negative reaction to key earnings & that’s where the strongest momentum lives in this environment.. Swing entries from here become more difficult with a lot more risk & a higher failure rate .. That will clear up eventually when post-earnings buying, especially into weakness, becomes our best setup .. Gamma remains thick & has been chilling up over a $1b+ for a good bit of time now.. As it pushes over 1.5b & approaches that $2b number, that’s where any further upside in the price action has a tendency to get really”sticky”.. So careful chasing strength into such elevated readings .. As for GAMMA-VIX, it remains in a stress free zone & we will continue to monitor closely.