Market Journal: EOD Verticality Coming
Decisively bullish signaling from the VOL complex on today's intra-day pullback points to an EOD rally on the back of bullish EOM/BOM flows ahead of a TGA/RRP liquidity starting next week.
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Discussion
In line with the analysis provided last night (see below), SPY had a solid move higher this morning on the bullish economic prospects of a Trump 47 presidency (more to come on this in a post this weekend) combined with benign PCE inflation data this morning. The market has since pulled back, but the pullback has not been confirmed, at all, by the VOL complex, with the critical VVIX solidly red despite red equities, a strongly bullish short-term configuration.
Today I traded around this move in Special Ops, and as of this afternoon am back in the full position I came into the day with and on watch for EOD verticality on the back of bullish EOM/BOM flows ahead of a surge in liquidity from the TGA and RRP facilities starting next week.