EVERYTHING A “GAMMA SQUEEZE”

 

“Squeeze me!!”

Every market, every day … up /down, it makes no difference … everything a

“Gamma Squeeze” … gamma being the change in delta, where delta is the

change in value of an option relative to the change in price of the underlying

instrument … and with the explosive growth of short dated options, both puts

& calls, “squeeze me” becomes the battle cry in every market when the freight

train of price starts moving, cuz on the other side there is pain … much pain

… and that pain is forced into the market and they become their own

worst enemy.

Of course, Wall Street loves it, cuz they control order flow, thus knowing when

trend is most likely to change, especially at the institutional level … then there’s

the fact that increased trading means increased commissions, which means

fatter profits … what’s not to like? … never mind the entire world is turned into a

gigantic casino … the only thing missing are the Indians wanting a piece of the

action from the reservation … just wait, some day they’ll try it!

USDJPY “to the moon Alice” yesterday … today it’s getting monkey hammered

through the Asian session … freight train up, now freight train down so far … and

when they’re done, mot likely it’s rinse & repeat  … no “fun-durr-mental” news

change in anything really, only the fact that tiny moves in short dated options

wreak havoc on first deltas, then the “gamma squeeze” hits, and all Hell breaks

loose … welcome to the casino!

Don’t get me wrong, I’m not sayin’ every single market move is the sole result of

a “gamma squeeze”, as there are plenty of market moving news items that hit

constantly … however, with EVERY SINGLE MOVE, there is a “gamma squeeze”

that goes on and somebody is getting their cashews crushed … some days it’s

smaller than others, and other days it’s “bigly & yuge” … but inside the casino,

where banks have the capital and the backing of scumbag central bankers, and

know order flow, they wreak havoc upon markets by knowing what small moves

can cause … and what they cause IS THE CATALYST of a lot of the bigger moves

that make ZERO sense are all about … like straight up, then straight down, or

vice versa on NADA news … it ain’t anything remotely close to a “free market”,

it’s a casino slot machine market run by immoral & depraved scumbags in

silk suits.

And again today, like almost all others, the Asian session sees the best trading

conditions and moves, and the rest of the world sees shit … I can just imagine

Mrs. Watanabe & gal pals, or the Chuckleheads, on a yo-yo string, getting

jacked around on very short dated put and call options, and as range is

extended the moves get larger … when they get tired of losing, or run out of

money for the day, it’s time to turn things over to Europe, where most days they

have nothing to say about anything … which then runs into the U.S. session

for some wrap up bullshit … yup, sometimes there are moves, but far too often,

there ain’t anything left of the day but crumbs from the table … welcome to

the casino!

Into the New York afternoon, and since I got to my screens about 7 hours ago,

USDJPY has been in a pathetic 35 - 40 PIP range, and that’s from the tips

… mostly the session is about 25 - 30 PIPS wandering around a “Flying Wedge

of Death [FWD] that traps plenty of traders looking for that extension of the

range, which so far we ain’t getting … current 20 Day Range MA = ~213 PIPS, so

today’s POS of about 116 PIPS well below that … New York session 20 Day

Range MA so far = ~ 39 PIPS, and its 20 Day Range MA = ~ 115 PIPS … to say

the least, this is embarrassing … could expand later in the day as we move

towards the close, but so far it’s a non event looking for an event.

I’m cutting the day short, cuz I have a checkup with my doctor … this is the 30

day anniversary of me getting released from the hospital, where I had a kidney

infection & pneumonia … some combo right? … I had so many drugs pumped

into me, my blood could have been used as a pharmacy! … feel great now, but I

have to go back and get checked out to make sure nothing is hiding in my toes

… so, most of the mid to late afternoon I’ll be busy giving blood, urine, and

some heart tests … I studied real hard, so I should pass!

No trades today for obvious reasons, there just isn’t anything here … granted,

it’s Thanksgiving week, but still it’s only Monday … 30 some PIPS over multiple

hours ain’t gonna get it done, and the real crusher is the fact that the “Trading

Ratio” [TR] is sitting right at 3.0 … most of the day it’s been right there,

threatening to move lower than 3.0, but hasn’t done so … still, not very good

at all … meanwhile, GBPJPY can’t even put in a 100 PIP range today … I’d call

that “ugly”. Hopefully tomorrow’s action is better … I don’t see how it can get

any worse.

… OUTTA HERE … “The future’s so bright I need 2 pairs of sunglasses 😎😎,

and my own Brinks armored truck” 💓!! … Onward & Upward!! 

-vegas