7:30 am
Good Morning! Have you prayed this morning?
SPX futures have consolidated between 5306.00 and 5314.00 thus far this weekend. All seems quiet this morning, the consensus seems to think things are getting better despite deteriorating conditions domestically. Iran’s president and foreign minister are confirmed dead in a helicopter crash. Any talk of foul play may bring about similar results to the assassination of the Archduke Ferdinand to the Middle East, bringing us to the brink of world war. Today is day 262 of the current Master Cycle. Any attempt at a new all-time high may bring a strong reversal.
Today’s options chain shows Maximum Investor Pain at 5275.00. Long gamma may begin at 5290.00 while short gamma starts beneath 5250.00.
ZeroHedge reports, “Futures are higher across the board as investors shift their focus from macro to micro, following a rollercoaster week that saw stocks slide then reverse higher after a soggy CPI and retail sales print, to close at an all time high and the Dow above 40,000. AI is in focus this week with NVDA earnings on deck, plus we will see a relaunch of sell-side industry conferences. As of 7:30am, S&P futures are up 0.1% and poised to open near record highs on Monday, while Nasdaq futures gained 0.2% as investors looked past the inflation implications of a commodity rally and wagered interest-rate cuts will remain on the cards this year.”
VIX futures are rising from Friday’s Master Cycle low at 11.91 on day 274. Friday’s low was the lowest reading in the VIX since December. It is due to make a significant turn off the bottom. Few investors seem to be aware of any danger.
Wednesday’s options chain shows Max Pain at 18.50. Short gamma resided between 12.00 adn 15.00. Long gamma may begin at 16.00 and is filling in strikes up to 50.00.
TNX has risen above the 50-day Moving Average at 44.22, creating a confirmed buy signal. The subsequent actions of the TNX may take it above its Cycle Top resistance at 48.86 by early July. The June 2007 high at 53.16 may be the target for this move.