SPX Gamma Wrap
As it turned out stocks were once again fooled by yesterday's overly optimistic headlines.
Neither is there much hope for a breakthrough in the talks between Moscow and Kiev, nor is Russia willing to de-escalate, but is rather redirecting troops to encircle the Ukrainian army in the east.
Too bad that Wall Street coders and quants are mostly too young to understand the Russian doctrine of maskirovka, but hey, according to “Google Trends” the search volume for this term is exploding right now, and that’s a start at least..
The SPX lost 0.6 percent in the process and briefly dipped below 4600, but was able to regain this important level in the last minutes.
On Friday about 28MM in gamma notional that is concentrated at that strike will expire, so it’s “stickiness” might get reduced.
Overall dealer gamma declined by 215MM to 363MM and gamma inversion stays anchored at 4540.
Maybe the most important story of the day comes out of Germany, where the government has enacted an emergency plan to prepare for a possible energy supply shock, as the country’s fate is being discussed tomorrow in Moscow.
Should Berlin not be willing to pay with rubles for it’s energy imports, then it is likely only a matter of time, until pipeline flows dry out and the largest economy of Europe will come to a standstill.
Markets should keep a very close eye on those developments, as this could be another catalyst for a possible leg lower.
Neither is there much hope for a breakthrough in the talks between Moscow and Kiev, nor is Russia willing to de-escalate, but is rather redirecting troops to encircle the Ukrainian army in the east.
Too bad that Wall Street coders and quants are mostly too young to understand the Russian doctrine of maskirovka, but hey, according to “Google Trends” the search volume for this term is exploding right now, and that’s a start at least..
The SPX lost 0.6 percent in the process and briefly dipped below 4600, but was able to regain this important level in the last minutes.
On Friday about 28MM in gamma notional that is concentrated at that strike will expire, so it’s “stickiness” might get reduced.
Overall dealer gamma declined by 215MM to 363MM and gamma inversion stays anchored at 4540.
Maybe the most important story of the day comes out of Germany, where the government has enacted an emergency plan to prepare for a possible energy supply shock, as the country’s fate is being discussed tomorrow in Moscow.
Should Berlin not be willing to pay with rubles for it’s energy imports, then it is likely only a matter of time, until pipeline flows dry out and the largest economy of Europe will come to a standstill.
Markets should keep a very close eye on those developments, as this could be another catalyst for a possible leg lower.
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