There was not much movement in s&p this week as I anticipated it was a very tight accumulation.
The reason I drew the blue accumulation lines was based on Cem Karsan (Croissant) support/resistance levels from the previous week.
This chart I tried to put Croissant levels onto a
SPY
chart.
The weekly / daily levels are scary accurate as you can see the regression trend I set in this chart is only for Monday Open -> Tuesday Open.
The median for Monday-Tuesday open is almost pinned exactly to close of markets Friday.
To understand why the markets are behaving the way they are, Sergei Perfiliev released a video this week https://www.youtube.com/watch?v=0oJqC9QK-I0 that helps the less technical understand what Cem Karsan levels and his S&P modeling really mean.
What Karsan means that Gary has his bananas is that thier is plenty of options liquidity (delta hedging) providing gary (the market makers options dealer). It basically means we're going to slowly grind higher until prince charming returns.
The reason why volume is so low is that there is plenty of liquidity in options that market makers don't need to move (sell or buy) as much of the underlying to remain delta neutral.
Who is Prince Charming?
Charm is the change in Delta with respect to the passage of time. The thing with options markets is that as options near expiration this rate of change increases quickly.
Aug 6 tweet thread from Karsan was a cryptic poem that he later re-tweeted this past Wednesday.
My interpretation of his prince charming thread is simple. We're stuck in what he calls the after gamma. Never ending call squeezes.
Which means big money is buying the dip with call options into a sell off that will eventually whipsaw back the other direction as market makers hedge (buy underlying) the call delta.
This chart I did 2 weeks ago is a perfect example of the call squeeze whipsaw we saw the last Buy the Dip 19th.
It was right before Karsan tweeted about never ending call squeezes.
He retweeted the same tweet thread Sept 1st, so my expectation is that we'll have another similar buy the dip this next Vix / Opex.
The reason I drew the blue accumulation lines was based on Cem Karsan (Croissant) support/resistance levels from the previous week.
This chart I tried to put Croissant levels onto a
SPY
chart. The weekly / daily levels are scary accurate as you can see the regression trend I set in this chart is only for Monday Open -> Tuesday Open.
The median for Monday-Tuesday open is almost pinned exactly to close of markets Friday.
To understand why the markets are behaving the way they are, Sergei Perfiliev released a video this week https://www.youtube.com/watch?v=0oJqC9QK-I0 that helps the less technical understand what Cem Karsan levels and his S&P modeling really mean.
What Karsan means that Gary has his bananas is that thier is plenty of options liquidity (delta hedging) providing gary (the market makers options dealer). It basically means we're going to slowly grind higher until prince charming returns.
The reason why volume is so low is that there is plenty of liquidity in options that market makers don't need to move (sell or buy) as much of the underlying to remain delta neutral.
Who is Prince Charming?
Charm is the change in Delta with respect to the passage of time. The thing with options markets is that as options near expiration this rate of change increases quickly.
Aug 6 tweet thread from Karsan was a cryptic poem that he later re-tweeted this past Wednesday.
My interpretation of his prince charming thread is simple. We're stuck in what he calls the after gamma. Never ending call squeezes.
Which means big money is buying the dip with call options into a sell off that will eventually whipsaw back the other direction as market makers hedge (buy underlying) the call delta.
This chart I did 2 weeks ago is a perfect example of the call squeeze whipsaw we saw the last Buy the Dip 19th.
It was right before Karsan tweeted about never ending call squeezes.
He retweeted the same tweet thread Sept 1st, so my expectation is that we'll have another similar buy the dip this next Vix / Opex.
