QUICK RECAP

Posted on

I will likely throw out another post either later tonight or in the morning, once all sentiment indicators update.. We saw some follow through on the selling that showed up on Friday.. It really showed up in the names & groups which were the strongest/hottest in recent days .. Today did look like continuation in that rotation back & forth we’ve been seeing in the recent price action.. Wasn’t a total risk-off type day, even as the flow was on the light side most of the day, they still found some names to do a little buying.. Gamma chiseled off a bit more today as well, closing under $1b as price action starts to loosen up a bit .. Not to sound like a broken record, because I’ve been talking about this everyday, but currently everything comes down to 2 major things.. A potential binary event with this phase1 trade deal, while HEDGEFUNDS are piling in on the long side .. That creates risk in every possible direction without much of an edge left out there for us to make a play on .. The only edge I currently see is riding the momentum over the extreme short term .. We can still play off sweeper activity we like & remain nimble .. We may also get an opp to play for a squeeze off our short-term sentiment indicators & catch a decent move intraday with as little risk as possible.. But for anything more than that with HF net long, retail p/c signaling caution & everything else we’re seeing, is it worth the risk here? Even with the possibility of HEDGEFUNDS stepping on the gas & going “all in” & creating a melt up scenario, we are still better off just taking advantage of the short term momo created off their buying & not much more. Now if we do finally get some consolidation & some of the heats cools down, then we can talk again.. The short side remains really difficult (as usual) but if we get Sweepers and/or gamma to flip, there might be some solid juice for you dark-siders to play off of .. So to sum it all up, the playbook remains = stay nimble, lean bullish & keep a close eye on sweepers for an indication of momentum & rotation over the extreme short term.