1/x Last night we got a nice dip down to 3664.25, but if you blinked, you missed it. That was the dip we were looking for...Despite the pullback, Vol was compressed, making it nearly impossible for the market to escape the suffocating iVol compression & exponentially increasing
https://twitter.com/jam_croissant/status/1336201613569036288
2/x daily charm/Vanna flows. As stated, the key has been, & will continue to be, to ride this market from the long side scalping tactically at our levels. I would look for this market to keep trying to shake the aggressive longs, but to begin stretching more aggressively,
3/x Towards an expanding 2 std dev up of the 20 day as we head into 12/14-12/16. Come 12/16 it’ll be time to briefly consider selling the news & preparing for a brief correction in time/ price again, being watchful of potential drama, as the prospects for final resolution of the
4/x electoral college on 12/14, > certainty surrounding a $1 trillion fiscal stimulus bill + govt shutdown resolution, likely supplemental EOY Fed liquidity @ their 12/16 meeting, FDA approval of PFE/MRNA vaccines on 12/17, positive holiday earning surprises... NTM qrtrly Dec VIX
5/x & 🧙♀️🧙♀️🧙♀️expiry, will likely all converge to light a Yuletide 🔥under the market into EOY. Hop aboard as the market chops w/seasonality-accelerated Charm/Vanna flows supplemented w/Ivol ‘wall of worry’ resolution... a time to sell this market with 2 hands will come sometime
6/6 between 1/7-1/15, but until then keep buying into that stairway to heaven...W/a trailing stop @ the climbing 20 day SMA on close. We continue to like dispersion trades as well as upside SPX calendar call spreads, as we slide to shockingly low event vols post 1/6. Good luck!🍀
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