Good morning! Premarket (even when down a little) is going according to thesis. The slight undervixing vol crunch is going to keep support under the indices as we advance towards ATH. How long do we have to get there?
There are a couple of time periods that can cause some volatility between now and then. The first is volex and opex. In a positive gamma regime, it could provide positive force. But we are mixed with index gamma negative and components gamma positive. So it could be volatile.
The next is debt ceiling that supposedly for 15Dec - 18Dec time-frame. There's no telling how that will play out, since the true deadline is hard to determine. I honestly believe it is more a January story based on the FRED data, but Yellen says sooner, I'll take her word for it.
There's also the Fed, but I think any headache from that is mostly realized at this point. Doubling taper? 3 rate hikes next year? They still react slower to upside risks than downside risks.
So I think next week should be a smooth green week, and hopefully we get close to ATH by then, because debt ceiling could cause some heartache. If we see a spike down, it should be overvixed and provide more fuel.
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