Tuesday 8 July

Good Morning,

A more volatile day on the S&P yesterday as the President sent letters indicating additional tariffs to a number of countries, however the July 9 deadline has been pushed back to August 1. At a dinner last night the President was asked if the August deadline was firm, he responded ‘‘I would say firm, but not 100% firm’’. I closed the swing puts yesterday with a small profit. I am not comfortable shorting in a news driven environment, waiting for long entries is more prudent for now.

For the time being the 5 day moving average is still inclining and the S&P remains well above the gamma flip area near 6100, as long as that holds buying dips remains the strategy. The S&P closed marginally above the 5 day yesterday.

Gamma is building above 6300 meaning that some traders are looking to continued upside, the largest strike is now 6500 but for the time being 6300 remains strong resistance.

Housing ($HGX)

The housing sector has badly lagged the S&P since the April lows, keep this on your watchlist, if this one doesn’t start to play catch up we need to be cautious.

SPX Implied Ranges