S&P 500 EW Weekly Update
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In this week's podcast I dive into the option trading dynamics and SPX.
I discussed the importance of understanding trading dynamics, particularly focusing on option trading and the role of gamma levels, call walls, put walls, and hedge walls. I emphasized the significance of the SPX index as a major trading venue for institutional investors and highlighted the recent large moves in the SPX, particularly noting the volatility and the impact of option traders and dealers.
I discussed the Elliott Wave theory, explaining that markets move in 5-wave trends followed by 3-wave corrections. I noted that we are currently in a bull phase with rallies consisting of 5 waves up and corrections of 3 waves down. I predicted that Cycle 4 will eventually lead to a market decline over the next several years, with rallies occurring in 3-wave corrective patterns. I emphasized the importance of recognizing these patterns to anticipate market movements and prepare for potential negative gamma situations that may lead to heavy selling.
Video Length: 00:43:16
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Disclaimer: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures ...
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