From MarketEar: What about those CTAs and gamma dealers here? Yesterday people were quoting Nomura’s quant and his take on positioning: “…now increasingly outright ‘long gamma’…less spastic market moves” Per our post yesterday “Where is that long gamma today…” we pointed out; “Watch the downside should they “flip” to short gamma again….back to magnifying the […]
dealer positioning
FED, TRUMP, Gamma Trap: Crazy Trading Day 8/23/19
Fed gave a speech that was “volatility dampening” at 10AM. Trump didn’t like what the Fed had to say so he started tweet-trashing the Fed and China triggering a “gamma trap“. Stock markets were just at the volatility trigger level of 2920 (black horizontal line) so the gap down flipped the trigger and dealers were […]
