1/x Here we are @ 4/12. The rally to ATH has transpired as predicted & the VIX has tumbled to 13 month lows. Thehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đŸȘŸ" title="Window" aria-label="Emoji: Window">of weakness has opened & this is where things start to get weird...it’s NEVER straightforward, & imagining how this market will manage to tumble through thehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đŸȘŸ" title="Window" aria-label="Emoji: Window">begins https://twitter.com/jam_croissant/status/1380403236260225025">https://twitter.com/jam_crois...
2/x to become fairly hard to pinpoint. The truth is, that despite Vanna’shttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👾" title="Prinzessin" aria-label="Emoji: Prinzessin">part time sched this week & charm’shttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đŸŠ„" title="Faultier" aria-label="Emoji: Faultier">fading strength as the week goes on, Gary’s still very much in control until thehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🍌" title="Banane" aria-label="Emoji: Banane">’s get taken away. Any rally to our 4140 *** objective should begin the process
3/x of loosening his grip...& any rally above 4140 toward a 420 spy before 4/20 should only serve to create greater potential energy for a correction in the month to come. Skew in the indices has been shockingly soft given how low IVol has become, NTM particularly in the front of
4/x the curve, as term structure has also steepened so dramatically, that it has left the potential for a wild rumpus to begin w/OTM puts in the front priced at absurdly low Ivols....A sizable buyer of margin puts at this juncture could be all it takes to set off a repricing that
5/x could ripple quickly through the Vol complex starting in the 2.5 weeks to come. Thishttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đŸȘŸ" title="Window" aria-label="Emoji: Window">happens to line up w/a 5 week OpEx cycle, which makes it all the more vulnerable, especially given what seems to be a dangerous liquidity period in what is the Treasury’s greatest monthly
6/x issuance ever($370 mil)..amidst no further SLR support & it’s clearly not a coincidence that our head zookeeper Powell took 60 min out of his Sun to make sure Gary was well FED come Mon morning. Add to this a critical CPI number Tues morn & likelyhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đŸ”„" title="Feuer" aria-label="Emoji: Feuer">bank earnings coming Wed,
7/x driven by ahttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đŸ”„" title="Feuer" aria-label="Emoji: Feuer">housing market, historic ISM strength above 64, & a steepening yield curve, & it all adds up to the potential for a disturbance in the force... multiple contraction via rates is on le menu. It’s not a Q of if, but when @ this point...& ultimately the stars seem
8/x to be aligning for sooner rather than later, as retail call demand also seems to be softening amidst an economic reopening, tax sails begin to enter LT realized gain status & investors begin the process of making estimated calculations & payments for taxes in the month
9/x to come... Watch Rates like a https://abs.twimg.com/emoji/v2/... draggable="false" alt="🩅" title="Adler" aria-label="Emoji: Adler">. Watch Fixed strike Ivol on the rally. Watch IWM & NDX for underperformance. That’s is where we’ll be proactively adding convex hedges opportunistically to our Tesla & Arkk bets to take advantage of liquidity on the tail when the opportunity
10/x arises. All of this said, as mentioned on Fri, remember it’s never an easy ride. we’re likely to get some more mowing of the https://abs.twimg.com/emoji/v2/... draggable="false" alt="đŸŒ·" title="Tulpe" aria-label="Emoji: Tulpe">’s & signs of accelerated forced call squeezes across the space before it’s all said & done. The RSI’s are blinking https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛑" title="Stoppzeichen" aria-label="Emoji: Stoppzeichen">. So gamma is the name of the
11/x game. With an https://abs.twimg.com/emoji/v2/... draggable="false" alt="👁" title="Auge" aria-label="Emoji: Auge"> to scalping to longer gamma & shorter deltas at each of our levels. If a decline finally comes mid/late next week, be careful buying the initial dip, as seasonality continues to weaken as we approach May & demand flows are waning w/ low short interest @
12/x record low levels, & decreased retail BTD’ers around to cushion the blow. Pair this all w/the potential energy of compressed IVOl & skew, & the tail’s potentially fatter than its been in a while w/an increasingly neg dist as well. If we can make it to 4/26 w/out a close
13/13 below the 20 day, we’ll know that the strength of the rally will continue until mid May. Good luck!!https://abs.twimg.com/emoji/v2/... draggable="false" alt="🍀" title="VierblĂ€ttriges Kleeblatt" aria-label="Emoji: VierblĂ€ttriges Kleeblatt"> https://abs.twimg.com/emoji/v2/... draggable="false" alt="🍀" title="VierblĂ€ttriges Kleeblatt" aria-label="Emoji: VierblĂ€ttriges Kleeblatt">
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