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πŸ›ŽοΈ Before The Bell with GammaEdge


πŸŒ… Good Morning, Reader!

This is the only July 24th of 2024 we get, so let's make it a great one.

Here's what we will cover today:

  1. SPX Prior Day Action (through $em and $volm commands)
  2. Pre-Market SPX 0DTE & Full Complex Structure
  3. Market Trend Model
  4. Proprietary Scans
  5. Mag7 Stocks

Time is money. Let's get into today's premarket prep.


P.S. If you are new, please click on the link below for an overview of the our 3-step framework as well as definitions of key terms unique to GammaEdge.

SPX 0DTE Recap (Prior Day)

Below is a replay GIF of $SPX spot price (5 minute bars), gamma levels (green/red horizonal bars), and our key levels (PTrans, +GEX, etc.) throughout the session.

Below is our $volm command, which displays the "centroid" of put and call volume for each 15 minute slice during yesterday's session.

What is important to observe intraday with this chart is the trend of the call and put centroids.

Paired with our Market Trend Model (below) intraday, it's powerful to see how both the call and put centroids moved throughout the session along with the MTM and spot price.

✍️SPX 0DTE Levels (Today)

PSA: We don't care if you are a day trader, swing trader, or position trader. Every trade begins as a day trade. You cannot willy-nilly enter the SPX with the hope that the trade will work; you need to understand the broad structure and enter when the conditions are favorable for the direction of your thesis (or lack of direction if you think we're stalled).

If you do not understand the structure when you open a trade, you have no edge as to whether the trade will work in your favor or against you.

GammaEdge's full commentary & analysis is provided in the discord

Market Sentiment

  • Delta Condition: ITM Puts (Above Spot) | ITM Calls (Below Spot)
  • Gamma Condition: Put Dominated (-15k Net GEX)

Transition Zones (TZ)

  • GEX: 5570/5575
  • DEX: 5570/5575
  • Drunken Sailor: 5555/5585

Key Levels

  • Upside: +GEX at 5575| COI at 5665
  • Downside: -GEX at 5555

Stay alert to intraday level changes using:

  1. Web App Dashboard
  2. $em command ($em spxp)
  3. $s command ($s spxp 0 0)
  4. $netstat ($netstat spxp)

Be cognizant of price in relation to transition zone. Are we above or below? Create your If/Then scenarios. As an example, if price moves through [x], then what? If price rejects [x], then what? You should have your game plan documented before the market opens! For there, you just need to execute.

Excerpt from our commentary within the discord:

Day over day, gamma conditions have flipped to put dominated.

The bottom of our transition zone is 5570 and the bottom of the Drunken Sailor Zone is 5555. As of 907am EST, SPX is implied to open at ~5000, which is well below both of the aforementioned levels.

If you look at the Call OI and Put OI columns of the Web App Dashboard around the implied open (5000), there is a significant imbalance of calls relative to puts. Because of this, we will need to see a continuation of new put speculation below us if we want to see this move lower sustained.

We can be best monitor this using our $vold and $volm commands, which are derived from intraday volume. We'll also want to see the Market Trend Model confirm any movement lower after the open.

Always remember that after we move through significant gamma, we risk the potential of unwinding gamma at a faster rate as time advances.

Remember to create your If/Then Statements. Then execute from there.

✍️SPX Full Complex (Today)

Below is the $SPXP output for the full PM settlement. The purpose of this view isn't a focus on trading -- it's to get an overall view of the SPX PM structure, which is the most liquid, most speculated structure in the market.

GammaEdge's full commentary & analysis is provided in the discord

Market Sentiment

  • Delta Condition: ITM Puts | ITM Calls (Below Spot)
  • Gamma Condition: Put Dominated (-23k Net GEX)

Transition Zones (TZ)

  • GEX: 5570/5575
  • DEX: 5570/5575
  • Drunken Sailor: Generally not applicable to all-expires

Key Levels

  • Upside: +GEX at 5600 | COI at 5600
  • Downside: -GEX at 5525

Excerpt from our commentary within the discord:

Meaningful shift in structure, which we can see the following:

  • Above spot price is dominated by ITM puts (focus on 'net delta' column to see this)
  • Gamma condition flipped to put dominated
  • Spot price is set to open well below the bottom of the transition zone

✍️Market Trend Model

GammaEdge's full commentary & analysis is provided in the discord

✍️GammaEdge Scan Results

NOTE: For the sake of completeness and performing a consistent routine, we are providing both call and put dominated scans. However, we are not representing to go long or short any of these.

CallDomDel: Returns stocks that are call dominated below and above spot price, which are signatures of a bullish structure.

PutDomDel: Returns stocks that are put dominated below and above spot price, which are signatures of a bearish structure.

Other Scans Offered

  1. Zero2Ptrans: Returns stocks that closed above ZeroGex but below PTrans.
  2. Ptrans2PGex: Returns stocks that closed above PTrans but below +GEX.
  3. We offer 19 custom scans in total

✍️Mag7 Single Stock Review

As we did with SPX above, walk through the 3-step framework for each of the stocks. Identify (i) key transition zones, (ii) key levels of reference, and (iii) gamma/dela conditions (sentiment). Feel free to email us with any questions as you perform your own self-analysis.

NOTE: Only the full complex time slice has been provided.

$AAPL

$TSLA

$MSFT

$NVDA

$AMZN

$GOOGL

$META

$AMD

πŸŽ‰Thanks for Reading!

If you have feedback for us on ways to make our newsletter more valuable for you each morning, please let us know! Reply to this email with your thoughts.

Best of luck out there today.

GE Team🀝

P.S. If you find this newsletter valuable, we'd appreciate you sharing it with a friend or colleague.


DISCLAIMER: This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

πŸŽ“Education

There are currently 2 courses within the GammaEdge ecosystem:

The GammaEdge Framework

This is our flagship educational course designed to significantly speed up the learning curve for new members.

Here is a 3-minute video covering what you will learn about, which revolves around our 3 pillars:

  1. Market Sentiment
  2. Market Trend
  3. Market Structure
video preview​

You can review lesson 1 for FREE using the link below:

PTrans2PGEX Email Course

GammaEdge's bread and butter strategy is called 'PTrans2PGEX' and is based off two of our core levels, which are (you guessed it!) PTrans and PGEX.

The beauty of this strategy is it's 100% mechanical and supported by rigorous backtesting. We also run this strategy live in the Discord with entries and exits posted, which members have access to.

To learn more about the strategy, including a FREE course, use the link below to access:

Have questions? Hit reply to this email and we'll help out!

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