Leave your bags at the door.
Friday 5th January - Daily Equity Update
At the index level VIX trend is still in a negative position. Momentum and Trend levels are ~ -0.5% lower at around 4665. This is in line with “negative gamma” levels of other services.
What does Negative Gamma mean?
At its simplest it means market makers will chase the direction of the market. If the market moves up they will buy, if the market moves down they will sell. This means higher volatility and potentially larger intra-day moves.
Here I have shown a chart of the difference between the high and low prices of the SP500. We come from a period where average daily moves are -/+ 0.5%. This chart for the previous 12 months would have averaged -/+ 2-3% moves.
While I don’t like taking losses I hate bagholding even more.
Reduce : Half position STLD AXON
Cash PCAR
We now have over 100 subscribers!! Which is amazing!!
To go more in-depth into the system and how I use it text is not the best format.
I have started a Discord channel. At the minute it is very basic, but it has voice and video sharing. For those that may find it useful you can use the link below to join.
https://discord.gg/8ryAyrcm
My intention right now is not for this to become a huge bustling chat room, but a place for people to ask questions that can be answered in the daily/weekly posts and the voice/video ability I think will be useful.
For those that do not wish to join Discord, I will if possible make any recording available if it is easy to do so.