• Options Activity: A lot of dollar gamma in calls at 3250 and 3300 overhead resistance. At the close, Tuesday, it was business as usual – selling OTM calls and buying deep OTM puts. Aggregate GEX is up 154% over its low, yesterday.
• Valuations: Calls remain underpriced and OTM puts continue to get a bid. Dark pools remain buyers.
• Volatility: Contango..
• Auction Market Process: Currently in balance and trading at fairest value (volume point-of-control).
• Macro: Travel, luxury and mining sectors hit by worry over the impact of coronavirus on the global economy.
• Calendar: FOMC will have the market focus with the committee’s comments regarding its rate cuts and T-bill purchases. Pending home sales at 10 AM, a marker for momentum. Earnings of note: MSFT, FB, PYPL, and BA. World Health Organization announcement at 1:00 PM.
All three vulnerabilities resolved – for the time being. Rates and $SPX rose and $AAPL beat with strong guidance. By Market Profile, the market is currently at fairest price. More events this week to contribute volatility but a more bullish near-term outlook appears reasonable.