Good Morning!

It’s a new week and we are ready to crush it in the market this week. After pushing through to all time highs last week, this will be a pivotal week in the market. Do we keep pushing into new territory or are we due a pull back? We will take a look at the GEX data and give you our breakdown.

Let’s take a look at what Wall Street whales were doing on Friday and observe some of the most unusual flows:

This one is super interesting! We are essentially looking at a contract that is 3 weeks out and $100 out of the money. Significant flows came in on this contract as well. MU has been on an absolute tear this year, so it isn’t beyond the relm of possibility that it could go on a big run over the next few weeks. This one hit the tape late on Friday during the last half hour of the market. I always find these last minute massive orders during sleepy times in the market interesting. Often, a lot of folks have checked out by Friday at 3:30. People are packing up for the weekend both physically and mentally. Sliding these orders in during those times is always interesting.

This one is interesting for the opposite reason of the contract above. DHR has had a rough year, but has the sell off been over done? Bulls stepped in with some unusual flow on Friday. An urgent repeater alert is my favorite as I’ve mentioned many times writing this letter. Getting this alert on a name like DHR is promising. I’ll be looking deeper into this one at market open and evaluating if an entry makes sense.

Right now SPY gamma situation is pretty even. The largest node is technically a little below current price at the $712 strike. However, $716 has a similarly sized node as well. When you have instances like this, it’s important to watch and measure rate of change. One of these nodes will begin to grow and the other will shrink. For now, The ultimate direction we will settle in will be where the largest dealer positioning ends up settling at.

I will not be trading SPY until it makes a definitive movement and the gamma exposure builds up. We will see where that settles at. Instances like these are the most actionable analysis, I understand that.

We will fix that this week as we will be pushing out our live alerts. Hang tight a few more days!

Talk soon!

-Caleb Gregory