Good morning, let's keep it simple as we start into the new week.
1) Implied dealer gamma improved significantly from -1308MM (5/19) to -336MM as we speak, so a major driver of last week's rally (dealer buybacks) is losing steam.
2) Rate hike expectations are implying a steeper rate path after inflation jumped in the Eurozone and 50 basis points are on suddenly on the table over there as well.
Between 4000 (still the main pivot) and 4200 (+26MM long gamma), no prominent markers can be identified. Above 4250 dealer gamma "flips" positive, which would bring much needed liquidity back into the markets and support a more sustainable rally.
1) Implied dealer gamma improved significantly from -1308MM (5/19) to -336MM as we speak, so a major driver of last week's rally (dealer buybacks) is losing steam.
2) Rate hike expectations are implying a steeper rate path after inflation jumped in the Eurozone and 50 basis points are on suddenly on the table over there as well.
Between 4000 (still the main pivot) and 4200 (+26MM long gamma), no prominent markers can be identified. Above 4250 dealer gamma "flips" positive, which would bring much needed liquidity back into the markets and support a more sustainable rally.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.