• Options Activity: More bullish options activity, yesterday. The gamma flip point has risen another 10 points. Gamma-related resistance at 3300 and support at 3200.
• Valuations: Calls now overpriced and puts on sale. Dark pools remain buyers …after 3 timid days of -3-4% changes.
• Volatility: GJR-GARCH volatility forecast for today is bullish at 9.92%.
• Auction Market Process: Buyers are in control.
• Macro: Markets are now betting the impact of coronavirus will be insufficient to exacerbate or sustain the recent selloff. Chinese and European stocks rose overnight. The 10-year Treasury yield is at 1.575% and gold has slipped. Coronavirus has hurt oil markets to the tune of ~20%.
• Calendar: Economic Announcements: Redbook (08:55), Factory Orders (10:00) Earnings: Ford Motor Co., Walt Disney Co. and ConocoPhillips
Markets appear less concerned about coronavirus and essentially unconcerned about US politics. While trade taxes hang over the long-term investment landscape, satisfactory employment and rising wages provide sufficient support for trend continuation. Looks like a comeback day in the futures market.