Nasdaq Explodes, Gamma in Play and OKTA
The Nasdaq with a massive day today and speculation is upon Gamma again as being the culprit, or maybe Apples Iphone 12 release tomorrow. The reasons are many, the certainties not so certain, so as always let’s just focus on the price action. When we look at the Dec. Nasdaq future we can see that today’s nearly 4% rip put it above the Target/Reversal fib. retracement around the 12100 area. Normally would would say that this area will be a battleground but we won’t discount the powerful move, rather let’s just say, we think its a bit enthusiastic and one which we would rather see begin to chop wood rather than continue unabated. Nevertheless, the markets smell weak short blood and dealers are quick to cover their Gamma exposure on the short call side and cover to remain neutral (or as neutral as possible). Anyway, Zerohedge had this great Gamma chart, most likely from Nomura’s CM and you can read the article, Here
As far as the NQ chart let’s not expect a runaway rocket here, history has told us time and time again that the .786 is key and we would expect a challenge around the 12100 area in the near future:
Looking at the QQQs and the market segment we call the QTFAANGMs you can see they are all having massive days:
We spoke about OKTA in August and we highlighted their earnings and future adoption by businesses. We like their market sector, we like their technology, we like what they are doing in the cloud space and if they aren’t on your long term radar, well you are missing out, Magnelibra Econemotions put that piece out in order for you to do your own digging and see what you think and here we have an updated chart:
Quite a run indeed and one that has plenty of future growth ahead of it!
As far as the other markets today (data courtesy of Tradingview.com)
US GOVT BONDS- Yields virtually unchanged with the long end holding on to gains:
Equities- Nasdaq the clear standout star today:
Currencies- Dollar unchanged and the Aussie the weakest link:
Bitcoin up today and pushing the $11500 area we touched on 3 days ago an area we feel will usher in the attack on the $13875 prior recent highs:
Energies and Metal- Crude the big loser in the energy sector down 3% with Nat Gas up 4% and back at the 2.90 resistance levels. Silver back near $25.30 resistance as well:
Alright till next time, thanks for reading.
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