 Hey folks, how's it going today? Happy Tuesday to you if you celebrate it is taco Tuesday And we're going to talk a little bit about what's going on in the markets kicking off this Tuesday with recap of what's been going on and Also what I have my eye on so we're going to go to the presentation here I'm just going to make sure everything is all set up the way that I want it to be set up So just give me one moment while I get everything going on my end But I'm excited. We've got fed nest a tomorrow Which you know is always fun and I don't think the feds going to do a whole lot But I think they're going to leave the door open to do more So maybe we'll talk about that a little bit if you have questions while I'm doing the stream If you're on the book map discord be sure to tag me in in the futures mayhem chat So I can see those questions and if you're on the YouTube pop it in the chat room there as well and So without further ado, this is my presentation for today We're going to start with this and we're going to go right to the book map live feed And this is called coalescence as a compass and the reason that I talk about it this way is this is how I trade I really do want to see coalescence among Indicators among positioning flows sentiment various areas to give me some degree of confidence for what I might see I like to have probabilities lined up for me I don't really like to take trades where it feels like it's going to be a coin toss because what's the point of that? We can always just go to a casino and pull a slot machine, you know if we want sort of coin toss gambling I'd rather try to feel like I have an edge That's part of the reason that I trade is that there are certain areas where I've developed that edge over time and Where I feel more comfortable trading where I have higher conviction where I have better win rates And so that's where I focus and then the areas where you know I might not execute as well. I look at them and I try to figure out can I do better? Does this fit my personality or is this not my type of trading vehicle or my type of trading style? And I think it's important for everyone to consider doing that as a part of trading. So let's dig in first welcome appreciate you all tuning in if You enjoy this content if you've been here before feel free to share it with others as I'm streaming live This is part of book maps Regular trading series. I've got a lot of great content on their YouTube and their discord So if you haven't checked it out, it's definitely a vital resource particularly if you're a day trader So a little bit about me. I described myself as an experienced trader because I've been doing this for about 18 years And I've seen pretty much every type of market environment. You can imagine I did do some of my first trades during the comm boom with yahoo and Amazon and flip them basically a day later for Almost a clean double and I felt like that didn't really make any sense So I backed off and decided to sort of reevaluate and figure out the markets more and then I you know Got a better job earned some money put it away and started trading with my own account in 2005 I'd borrowed my dad's money to trade Amazon and yahoo back in it back in the dot-com Bubble and so once I started trading with my own money. I learned more about the financial system, of course I started 05 great financial crisis played out 0809. I got to kind of navigate my way through that I made it out the other side alive intact and actually did pretty well and learned a lot about the plumbing of the financial system along the way So that sparked a passion all that experience. It's stayed with me I like looking at flows sentiment positioning options geopolitics the macro situation the systematic trading is more of my approach especially when we talk about swing trades and of course, you know I started with technicals. I love looking at charts and so that's a pretty big part of my process as well And so if you want to learn more about my work, of course, you're welcome to check out trader a calm That's where we help traders find an edge. We're looking at shorter time frames We're looking at a variety different instruments bonds commodities 4x equity futures stocks options We also have macro visor calm This is for your longer-term investors and swing traders where we help to make macro actionable and Something that you can use as a part of your broader top-down investing process. You can also check out my YouTube I know you're on the book map YouTube my YouTube's over there at youtube.com slash at mayhem 4 markets And I put out content pretty regularly. I just posted a video You might find interesting if you're looking at the commodity space called from abundance to scarcity and it's talking about some of the themes this first chapter is about labor scarcity and Finally if you want to get up to 40% off a book map Go to trader a comm slash book map Scroll down to the bottom under specials and we have some pretty awesome deals there And if you want to check out trader aid you want a good deal to sign up for the service that we have there Use the coupon code book map 30 at checkout for a 30% discount in your first month or year It's a one-time offer. It is a limited offer So it may end soon, but I want to put that out there while I'm doing this stream today in case you Wanted to take advantage and so This is the disclosure the disclaimer. We're going to talk just a little bit about What the risks are here, right? All book map limited materials information presentations are for educational purposes only and should only It should not be considered specific investment advice No recommendations trading futures equities and digital currencies involve substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of Future results, so let's just be clear about that. Please be careful You know when you're trading this stuff, you've got to make sure you're managing your size You've got to make sure you're managing your execution No one else not me not anyone else there on the social media verse or the discord or YouTube or elsewhere is going to manage your Positions for you So if you're finding yourself for example having trouble sleeping with the size of your positions Consider closing out at the end of the day if your day trader Don't carry anything overnight because that can impact your bias the next day is as folks have said but also be mindful of Your size if you're running too much size and you're in positions You do want to hold or you're just feeling very uncomfortable having to watch every tick size down, okay? If there's no shame in Trading small until you feel comfortable with what you're trading and the reason I talk about this is because I like to try To help people become more sustainable traders, you know, I do coaching I help people one-on-one and with group classes as well and one of the biggest things that I see is people burn out They they put too much emotional energy into their trading They run it like a sprint and then when it doesn't go well They just kind of blow up and I mean financially and emotionally and I don't want to I don't want that to happen to you so just consider how your emotions are calibrated for your trading and Your execution your discipline your position sizing has a lot to do with that how you manage your risk Getting out of losers quickly riding those winners. So let's talk about the overall market situation here This is double AI I Double double a double I bulls versus bears basically and so this is a measure of retail sediment and what you're seeing here is Basically neutral, okay, it's not bearish. They're not like you know, despondent They're not euphoric. We've kind of reset in the middle and that's the theme for today is that we're kind of caught in the middle Okay, so we don't have a strong Bias from sentiment. In fact, if you look at other sentiment measures, whether it's investors intelligence or some of the Goldman or or Bank of America Measures, they're all pretty much neutral Which is just telling us there's not a lot of conviction by other side But it also means the market is a little more open to move And it's more open to move also because we just rolled off one of the largest options Explorations that I think really the largest quarterly ever is three point four trillion dollars of gamma exposure that rolled off on Friday's options Expiration and that was significant enough that the amount of gamma that remains on the chain is the lowest that we've seen post quarterly OPEC so what does that tell us? It means price can move more freely and the sentiment is telling us is that as well that there's not a lot of You know decisive bearish or bullish sentiments kind of been reset here and That gives us a little bit more opportunity to move more in either direction as well We'll talk a little bit about that because I do have a pivot point going into today for where I think I would want to take longs or where I would want to take shorts and it Goes with the theme of coalescence right because we do want to talk about the idea of finding areas that line up so it does line up with that theme as well and Equity options are also neutral. This is the CBOE equity put call ratio and it's pretty much flat You know when you're when you're at about point seven six, which basically means, you know, there's like one point two four calls for every put It's it's constructive, right? There's not fear in there But there's also not enormous amounts of optimism in there. It's just sort of neutral So again, this is the sort of theme that we have going into this week is a very neutral Set of sentiment of flows of positioning Guess what else is neutral? So is momentum if we look at the New York stock exchange McClellan oscillator, it's also pretty neutral So this is a theme that we're gonna talk about more as we're watching book map as well is that again We're kind of at a point where the market's going to start taking more cues from events The big vent we have coming into tomorrow is of course Fednes day or the FOMC Decision and press conference that follows. I Don't expect a hike Not tomorrow. I expect them to leave the door open to hike. I Fully expect them to hike at least once maybe twice more I do believe we're seeing a reacceleration of inflation that we should be mindful of and so the greatest risk to tomorrow Isn't going to be the press release or the decision really to do nothing at that meeting It's going to be how Powell is able to manage expectations at the press conference in my opinion Because I think he's going to want to leave the door not just open but wide open to the possibility of more than one rate Hike given that we're seeing some signs that inflation is reaccelerating. What do I mean? For example in PPI the producer price index for August Diesel fuel rose 41 percent month over month and diesel is connected to everything we do It's in freight. It's in shipping. It's in farming. It's in rail It moves goods around the world and if its price is rising that much There is likely to be pass through impacts that we could realize later in CPI and we're also seeing some of those beneficial Base effects roll off from last year as well So there is some chance that there will be an acceleration that gives the Fed pause about pausing Right something to consider as we manage expectations And this is one of the reasons that I think rates have gone so far for example yesterday The tenure briefly traded at 4.35 percent. That was the highest yield on the tenure note since 2007 So the the rates market is kind of looking at this inflation situation too and Becoming a little bit more anxious which makes sense and that dovetails into what we're talking about with equities because again We're still more free to move about while rate volatility and equity volatility is low We're sort of unpinned right so we have some positioning dynamics that we want to take into consideration with that and Those positioning dynamics from an institutional standpoint are again pretty neutral If we look at NAIM they're back to you know Basically flat, you know, they're still bullish, but they have larger bearish hedges in place Which is one of the reasons this is flattened out and again this leaves more room for either direction So that's kind of the the sentiment flow and positioning dynamic as well as momentum. It's all very neutral and When we look at options, we do have some key levels to take into consideration which I'll break down on the next slide But this is a visualization. These are updated every 10 minutes on the trader aid website And it's analyzing the entire CBOE options chain the full gamma profile We also have the zero DTE gamma profile and volume as well But this is an interesting visualization because with options playing such a large role in the market Understanding where that positioning is is really important to getting a better sense is to you know Where some of these key levels may be and of course we have to factor for the delta between ES and SPX Which is currently about 49 points So ES is trading at a premium of 49 points or handles to SPX cash Which then you factor into the way that we're modeling these levels, right? So first we have the key levels for SPX and these are mapped out based on analyzing the full options chain So right now pre-market. We're implied opening around 4445 on SPX Right, so that would be a Little bit of a concern that gamma level at 4450 is pretty important It is a bit of a vault trigger that we're seemingly going to open below that could put some more pressure On equity prices, so I'm actually going to be putting my pivot at 4450 today And the reason that I'm putting my pivot there and we'll talk about it more in later slides is because that's also about where the 20-day moving average is and so we see that coalescence between a very large level of options positioning one of the largest on the entire chain and a Key moving average that we know many market participants market makers and algos watch quite closely But we have other levels that we should be aware of too We're not far below the gamma flip now Let's back up for one second here So our naive model implies that dealers right now in negative gamma territory are going to be selling 17 billion of SPX exposure in ES For every 1% down move and buying the same for every 1% up move So that's that's that negative gamma environment where you have the temptation for dealers to do a little bit more of an Addition to volatility dynamics because they get into what's called a chase dynamic doesn't mean every dealer hedges this way Doesn't mean the model is perfect and but it does mean that we're very likely in this negative gamma environment and you'll see more of that which can Increase realize volatility and also expand the range that we trade in so that's just a little bit of nuance going into that Gamma flip level now that gamma level at 4500. That's also pretty important. Let's go back to that chart And you can see on the right side Those gross gamma levels that 4450 right around where we're trading, but 4500 is an absolute monster That's an area where I would expect a lot of resistance if we catch a strong bid 4500 SPX which is about 4549 ES It's going to be a pretty important level of resistance to watch similarly 4400 SPX which would be 4449 ES would be a similarly important level to watch So these are the SPX levels for today calculated on the entire options chain But I also just as a courtesy translated those to the ES levels to watch as well since we should have a sense as to what those levels look like You know you can screenshot this for your trading week These levels are usually applicable for at least several days the system updates regularly But you know major changes to the options chain don't tend to happen too much outside of OPEX week So just something to take into consideration. So that's going to be the presentation I'm going to get us into the stream now because I want to get us into kind of what's going on I'm going to do a little bit of tweaking here on the visualization. So give me one second In terms of some of this Delta that's that's creeping over here. I just want to make sure that It's not Accounting for too much of the sub Chart here. So just give me a moment to tweak that a little bit So in essence and I'm going to just do the same thing on ES So give me one moment on that one too. I just want to have everything be consistent for you all so you can see what I'm talking about and These are the mark market pulse add-ins by the way for bookmap. So if you're not familiar with these, they're pretty cool. I Found them to be quite helpful for just getting a better sense as to what else is going on underneath the surface And I'm just going to alter the color on that one So I'm just going to use the dropper for that and maybe just lighten that up a little bit So let me know if y'all can see that all right But this is basically what we're going to be looking at for ES and NASDAQ the sub charts They are going to account for volume pressure. That's the gray sub chart line We're going to have the icebergs in light blue stops in light red and then the cumulative volume Delta will vary depending on really Whether we're in negative or positive dark red is negative volume Delta dark green is positive volume Delta and You know, we'll keep track of that because it just helps us to show whether there's increasing pressure in the market That should be a little easier to see and we did have some rather alarming Data come out from the housing numbers today. It was a drop of over 11 percent I want to say in housing start in housing permits. No housing starts building permits came in Okay, but housing starts came in about 11 percent lower quite a bit lower than the expectation of 1.44 million And I wonder if that's starting to tell us that maybe We're tapping out a little bit home builders had had to make extraordinary concessions to continue to push Their product out there their inventory. They've been slowing on some of that building We see the lowest rate of mortgage applications about 27 years. So we'll be interesting to see how ITB does through all of that So as we get ready to open here, let's take a look at some of the resting liquidity levels in the NASDAQ and in the S&P I'm just going to zoom out typically the S&P futures have a lot more of that And I think that has a lot to do with how important it is as a hedging vehicle for SPX most of the options trading that happens in the market is Happening in SPX right and so I think it's about 70% of all notional value that trades is in options and SPX is Something like well over half probably 60% of that total and that's about 1.2 trillion a day Where close to half of that 1.2 trillion is in zero DTE's so it matters, right? And there's actually more activity in the S&P futures contract from market makers hedging their positions in SPX then in futures volume from you know normal participants So that kind of gives you a sense as to one reason it's so important to watch But also one reason it's really important to watch within the context of you know adding options to it so That's something that that we keep an eye on now. Give me one sec here. I'm gonna make a quick adjustment I'm gonna do I'm gonna make sure that we have that order data that we need For this So give me a minute here to just tweak something All right, awesome So we're gonna put those options levels in there And I did make a couple of adjustments to the engine. I know I wasn't here last week, but I'm here this week and I've kind of rewritten a lot of the code here So it's more accurate on its Delta calculation on its mapping of key levels that it's updated more frequently So these levels are updated every minute There's a small delay from when they're refactored, but we'll be working on getting real time from CBOE as well Which will be pretty awesome And this also plugs into a whole bunch of other stuff we have over at TraderAid So this is always on the discord the ability to see all the options levels is Articulated in a number of different ways including bot commands charts And of course the book map add-on and I'm working to bring this to the book map marketplace, but Yeah, there are there are some things I need to do. So yeah, let's go ahead and get that going All right So you can see yesterday's hot put level you can see yesterday's hot call level They will update as we have about 10 15 minutes of options trading we establish those levels to start the day We can also see some of these key levels in the gamma profile Right and that's all mapped out the gamma levels are in order of importance So gamma one is the most important largest level similar with these key levels. That's based on net Exposure gamma levels are based on gross exposure if you go back to the charts You can kind of see what I'm talking about the gross is the total across the chain The net is the difference between puts and calls and so those have a little bit of different interactivity That's why I map them differently. You can also see the volume trigger the gamma flip level We map everything out and it's updated automatically and it's calculated by scraping about 212,000 data points on the SPX options chain That's kind of cool When you look at the amount of data that it's processing and how quickly it's able to do it And then for the zero DTE is obviously it's much less Processing and that's one of the reasons I'm able to keep it more near time So those levels get updated regularly. I will be adding something similar to the NQ contract in time QQQ is the most active options trade for NQ really so it's a bit of a different dynamic. It's not index options So there's a little bit more let's say Translation necessary to get it going the way that I would want to get it going So that it's accurate, right? I don't want to just throw spaghetti at the wall and hope for the best when I write something I do hold myself to a pretty high standard to make sure it works well So I will be working on that though. That is something that's in the works But I'm going to focus on yes a little bit more because there's a few more features I want to add into that So not a lot of resting liquidity in the Nasdaq as we get ready for the open it's really more about Yes, you know, you can see that and when we zoom in here We've got a pretty big resting bid down here at about 44 71 We had a larger resting offer around 45 10, which is just above the hot call or the most active call Yesterday, but it's faded a bit. It was 389 earlier. It's about 262 now So that conviction has dropped off just a bit there and just searching through some of the News here the treasury five-year yield rises to four point five oh four percent This is another highest yield since 2007. I think we can now say we haven't had a mention of 2007 in ten seconds. I mean, it's just we keep going back there in a number of different ways Doesn't mean the outcome is going to be the same by the way I don't think that's the case but it is interesting to see these yields continue to scrape levels We haven't seen in a very long time So if you're tuned in on the YouTube or on the discord if you have any questions feedback if you'd like to weigh in on things I'm saying, please feel free to share Don't be a stranger out there Microsoft just announced a quarterly dividend increase About a 10% increase over the last quarter's dividend and let's take a look at rates here. Just visualizing the 10-year Note contract pretty calm this morning Not a lot of liquidity in this either. I think I'm going to need to rotate this one over So I'm going to do that real quick So that'll take a minute to kind of queue up everything, but I'll back load the data for it Crude oil this morning. Wow. I mean, what a what an adventure I think the last time I was on here with you all crude oil is trading around 86 87 dollars and I said boy That's a little hot something to keep an eye on particularly as it might affect rates markets And we just continue to plug higher with crude and rates, you know It's interesting equities have been pretty ambivalent about that so far How long that lasts remains a whole other question altogether, but I think eventually a rising rates will matter and We're just about less than one minute away from the open here We're going to go back to the ES contract and focus on that wouldn't be too surprised to get a bit of a bid in the Open but really again that 4450 level on SPX and so that's going to be What 4499 on ES that's going to be pretty important That's going to be my pivot by the way if we're able to push above there I think it'd be interesting to take longs because we're you know breaking above the 20-day We're pushing above these these key areas of gamma that offer a lot of resistance So breaking free above them can help but on the other side of it if we get caught below I think there is some reasonable chance that that that person who's patiently waiting down there at 44 71 Gets their fill. So here we are at the open. We can see that volume increase Everything gets a little more exciting shall we say Now you have a lot of Institutional traders and market makers that are kind of squaring up their books in the first and last hour of trading especially So things are going to be much more liquid during those periods That's why it's a very interesting time to watch between say 930 and 1030 to get a flavor for how the day is going to take shape But even before that you've got opening ranges of various time intervals as short as say 30 seconds all the way out to 30 minutes Everyone's got a different approach. I like to look at the five and 15 minute opening ranges the most I think that they back test pretty well in terms of identifying trend days should they emerge Someone asked in the YouTube. Do I look at crypto? I do I don't spend a ton of time on crypto But I do look at it as a kind of heuristic for risk appetite, right when people are lagging into crypto more They're more likely to want to leg into growth stocks and similar factors. So I look at it I don't trade it a ton Because it's it's more of just sort of a beta machine and my favorite beta machine is trading the NQ We are seeing some weight here though at this open It does look a little bit heavier so far which is interesting institutions have actually been buying this tape But you also see some of the smaller traders getting pushed out So that's something I like to see to be constructive, but I like to see it in larger Divergence right I'd like to see more iceberg buys and more stop out So this is a little early to say that I'm seeing that sort of Divergence it says the bigger institutions are buying what the smaller traders are selling, but it's it's at least a bread crumb Wouldn't be too surprised if we get pulled back up into that 4450 or 4499 area on ES That 4450 area on SPX just because again, it's such a huge area of options positioning so Sometimes that can act like a bit of a magnet before you ultimately decide what's going to happen with it if you're going to break above or be rejected Let's take a look at the NASDAQ 2 here Much more volatile as one could expect it is the beta machine You do see a decent amount of that pressure that volume pressure here that we can see identified by the volume pressure market pulse add-on That's always interesting to see I would love to see some icebergs coming in with that volume pressure We don't see that yet It's just very choppy here as the market's trying to decide how it wants to trade Not too much activity and rates crude seeing a little bit of selling Here not terribly surprising after the run it's had that it would pull back a bit It's actually healthy to see it pull back I do ultimately think though that oil prices are going to move higher Over the the rest of this year, but in the short term having a pullback in a Clearly what looks like a reversal and now breakout is is healthy. It's consolidation of gains Going back to yes still looking a little bit heavy buyers haven't been able to do much remember we are Post options expiration here. So those delta and theta decay flows that helped to bid the market up They've been subdued quite a bit And it looks like we just had a 250 cell block there Just got a verbal alert. That's one of the cool things about book map as well as those verbal alerts That you can have the sort of robot Articulate I can share them on the audio feed if you guys want There's no dumb questions here friend anything that anyone wants to ask You know, this is a good place to ask So whatever your trading experience or background or whatever So someone in the YouTube asked what is an iceberg? So I'm happy to explain that and I think that could be helpful for other folks So if you're an institution or just a large trader and you're trying to move volume without really having a big impact on price You're trying to also ensure the counterparties you're trading with are not gonna have a sense as to how large your order is Until it's been executed you do it with what's called an iceberg So an example of that is let's say I needed to move 10,000 shares of Microsoft I might iceberg it in 200 share blocks and the reason that I would do that So it'd be like 50 blocks is that the other people that are seeing the trading book only see me at the bid Or at the offer for that size. They don't see the full 10k They only see 200 which means the reaction that you get in terms of price running away from you is Likely to be much more subdued if it happens at all So icebergs are used to sort of conceal total order size now It doesn't mean that they're a perfect instrument, right? There are disadvantages to using icebergs and one of them is that every time you get a fill You're kind of pushed to the back of the line other orders get their chance to get filled So because you're not showing your full size you get queued on each rotation So if you're doing 200 shares that first 200 shares after that's cleared now, you're kind of back in the queue for your next 200 shares You know behind other folks So it's not a perfect science in terms of icebergs, but it is something that I watch Because in the context of trading S&P futures when you're seeing institutions Buying or selling in large passive volume It can help you get a sense as to what their conviction is for the day And what I really like to see is the divergence between stops Which usually indicate smaller traders getting pushed out of their positions and icebergs which generally indicate larger traders Accumulating or distributing positions So when you see that divergence when say let's say small traders are getting pushed out of shorts And large traders are actually getting long, you know getting a big exposure into that that can be helpful You see the divergence away from positioning where icebergs are getting, you know more short Small traders are getting more long That can tell you maybe if there's a wide enough divergence say thousands of contracts that you're likely to have a negative day On the other side of that if the big institutions are buying you see icebergs pushing into positive territory with size You can see that on the sub chart You can also see that on the bottom right hand corner counts off the number of icebergs It's seen during that last 30 minute period basically the period of time that you have on screen Right, so you're able to see that you're also able to see the stops right below it right now Both stops and icebergs are negative so we don't see that divergence What we would want to see to get the sense of say institutions buying in size would be icebergs plus 2000 stops negative 2000 right that means the smaller guys are getting pushed out the bigger guys are buying that weakness and we're likely to Start to push the other way that type of divergence is often a good setup Particularly if you see liquidity also confirming it So if the big guys are buying and then you also start to see that sort of stair step of liquidity above price or more and more Resting offers are building above and above that can also give you more confirmation that you know We're heading into a positive trend So let me let me know if that helps your question I know it's pretty long answer but there's a lot of mechanics involved with both what an iceberg is and then kind of how to process it in the context of You know what we're looking at on book map or what we're looking at on other stocks as well or other futures contracts quite frankly Anywhere that data flows is supported it is it is constructive to pay attention to it Yeah, you're welcome great question by the way And if anyone else has any questions about anything, you know, whether it's what we're looking at and talking about or other areas of Market, please feel free You know, I like to have this time to talk about whatever's on people's minds and you know Encourage you to subscribe both to the book map YouTube as well as my own at mayhem for markets Because there's a lot of content that we're putting out there that I think is helpful Yeah, you're you're welcome and you know individual traders can use icebergs to a lot of brokers support icebergs If you're moving large positions around your book and you want to get better Execution in terms of your fill price Often is the case that having an iceberg if you're not super time-sensitive if you don't need to get in and out immediately It can be helpful So, you know, if you're on like interactive brokers or think or swim or other brokers like that I believe that they all offer those icebergs I know interactive brokers does and that's been pretty helpful for me when I've had to clear large positions And I didn't want to move price too much right just want to kind of wait for someone to come and Be willing to buy my shares or whatever it was for me to get out And the same thing is true like if you're a large futures trader It can be helpful for that as well I don't know if anyone in here is moving, you know hundreds of contracts of futures But if you are you probably already know about icebergs if you don't you should because it's just it's a good way to make Sure that you know you see it right when you go into place in order for a large position You see price kind of move away from you and and unless you're like firing a market order off or you know Whatever it's often the case that you see price kind of move away unless it's something very very liquid And so that's the other reason that I think icebergs are helpful. It's just kind of hide your size a little bit So you don't kind of push the the offer and the bid to become wider and then you have to eat that spread So we're building volume around this level that is constructive. We've built some volume below us, too I think that's that's good, but we're still not above my pivot level where I'd want to get long on this remember, we're looking at, you know, basically 4450 on SPX and just about 4500 on yes about 44 99 Yeah, you can use an iceberg as long as your broker supports it, right? You can use an iceberg with pretty much any Configuration of trading whether you're employing margin whether you're trading futures stocks options currencies You know it typically as long as that order type and execution is available Your broker will give you the opportunity to put that type of order in and they may have different names for it But I know on I be it's called an iceberg and there's a variety of different ways you can execute it actually and Yeah, I mean if you're trading large leverage that you know, you might be really time sensitive on order fulfillment So maybe that makes icebergs less attractive for some situations But if you're not as time sensitive if you're you know willing to wait a little bit to get the best pricing Then icebergs can certainly help Let me know if that helps Miguel. All right, so that gamma 2 level that's pretty much the pivot So it has moved down a little bit the deltas move down just a little bit, but that's pretty much our pivot So if we can push Meaningfully above there that's where I'm going to look at this market more constructively So we're really looking at it Maybe I'd like I would say another 10 points and holding that and building volume and then I'd say okay We'll probably have a bit of a runway. We're building here to push more And we are right here at the point of control and the view app You can see that with the view app on the white line the point of control on the yellow line I know they're kind of converging here, but that's where we're testing. We're building volume there So as long as we're holding above there, it's constructive. We're kind of you know vacillating around that level But again, I would want to be about five points above gamma 2 to really feel comfortable And this is why I don't want to take a trade before that because it's just going to be choppy You've got kind of a battle between the buyers and the sellers unfolding right now Let's take a look around see what's going on in the Nasdaq here chop city over in the Nasdaq Which is to be expected There's a lot of sort of Different themes going on that traders and investors are having to digest Rates rising but there is some constructive news and certain elements of tech certainly the Microsoft dividend hike is positive But at the same time the five and ten year yields pushing levels. They haven't seen and gee like 16 years It's probably not great. So Just so a convergence of different things for people to consider adding to that volatility rates pretty calm today over all though Just a little bit of weakness in the 10 year and 30 year looking at the broader chart of futures and Nasdaq is the lost leader so far Russell's actually got a bid. I'm not sure if that's legal. We'll have to check halfway kidding and Just kind of testing this point of control and and view app And this is why I'm not sort of eager to take a trade in either direction yet I want the market to tell me what it wants to do So that I have the conviction to join in right right now. It's deciding and That's one of the biggest things about being a trader is is not only knowing when to trade but knowing when not to take the trade So I'd be looking for another five points and holding and building volume up above gamma two. We're getting closer And that starts to look more constructive See if our our nazi friend is confirming a little bit, right? We'd love to see that push higher here. There we go That's a little better. Oh, yeah, okay. That's starting to look better. That's starting to look better. Let's give it a little bit more Oil's just kind of flat giving up some of its earlier gains The buyers are starting to get a little bit more excited here. I do like to see that Let's see how our nazi friend is doing. Oh, it touched the top and kind of retreated down still more sort of a Consolidation decision theme the Nasdaq just like the S&P kind of playing around with the point of control and the view app here Yeah, and that's it's again. It's really quite choppy, isn't it? So I had there's no dumb questions here at all my friend. You don't sound dumb So the the way that this breaks out in the heat map What you're seeing is the liquidity is going to be in the brighter colors like the red is going to be your Most intense liquidity yellow is going to be less intense and then these pockets of blue even less intense Of course intensity is also defined to some degree by proximity to price So you can see that 294 even though it's a larger order It's a lighter blue because it's further away from price in this 266, which is darker So proximity to price on the heat map matters as well And then the order book you can see where these levels are coming in from because you can see that You know that 200 plus contract order here at 45 10 And all these bump outs these larger areas 227 200 down here 468 to was this 219 to 70 those are the areas where there's larger resting liquidity And what I mean by resting liquidity is those are areas where there is a bid or an offer That is a limit order that is sitting on the books waiting in the size that they order book shows you So if it's above price, it's an offer if it's below price It's a bid and then that's expressed in the heat map by the way it colors You can see there's a lot of liquidity around price right now That's good you like to see that because it means that there's a reasonable amount of participation in this market that we're not just going to You know basically flip around 10-point ranges with with gaps up and down. There's more Participation shall we say? Let me know if that helps. I'm happy to dive in further on the liquidity front in the heat map And we do see that hot call up above here. So there is some participation. Let's zoom out a little bit more There's that hot put down lower right and look at that actually. This is very interesting Remember we keep talking about coalescence as a compass. Don't we friends? What is this right here the hot put at that 476 bid that is pretty close to coalescence there So I think this is an important level to watch today if we can't get a bid if we can't push higher This hot put is likely to start pulling price lower now the hot call has an asterisk against it right now So that means initially the put call ratio means there's more calls than puts and also that that hot call has more volume than the hot Put okay, so that's what that asterisk means It just means there's a little bit more of a magnet higher right now based on those volume dynamics And again gamma 2 is my pivot. That's about the 20-day moving average It's just above the point of control and so that you know having the convergence of VWAP point of control and that gamma level Which is also the 20-day moving average. There's four points of convergence Coal you know convergence or coalescence as a compass That's exactly why that level is so important and that's why I want to see a push above to get bullish on this tape Same side is if we see a pretty big push below point of control and we get some follow-through selling here I'd say below 44 87 or so that's going to be room for further downside to explore this 4471 level So that's that's kind of why I'm talking about that as a pivot today because those are that's and you can see the markets Putting a lot of effort into figuring this out, too It's really been trading in this tight range Trying to figure out what direction it wants to go if any at all There's nothing wrong with the market trading sideways, too Sometimes you have days where nothing of any value happens as well So there's no reason to just get in the trade sit around biting our fingernails hoping it goes in the right direction Why why don't we just set up the probabilities in our favor? Which means only taking the trade when it makes sense Right, I think that makes a lot of sense for us as traders, too Because we don't just have you know capital in our account We have mental capital right and we need to preserve that as well We also have time as a component of capital right if you're in one position You may miss the opportunity to be in another one because we're spending time on the wrong thing So those three areas we need to be mindful. We need to be shrewd about how we invest our money our time and our energy Whether it's in trading or other areas of life a little more selling pressure here Let's see how our friend over at the Nasdaq is doing Not well as a matter of fact. This is looking kind of bad Nasdaq is now okay, so we're gonna call that an opening range break lower on the Nasdaq and We are getting follow-through on the S&P need a little more to call it that break But the Nasdaq is certainly wanting to lead the way lower overall You did get a little bit of institutional accumulation in the Nasdaq on that last push lower some small traders got pushed out But you also see liquidity building below you see that stair step lower So that's not that's not a good sign the old nazi now. Let's see if the S&P confirms. Let's also take a look at crude Crews got a little bit of a bid coming back not much rates actually coming down here a little and Said and everyone else out there on my YouTube there is always a book map stream as long as the markets open you guys can watch it It doesn't have everything that this feed has because it's the free version the full versions over at trader aid Which you can get a 30% discount on by using the code book map 30 at checkout But if you want to learn book map, there's tons of great resources also on their YouTube They've got tons of instructional videos that talk more about kind of how the system works What different areas of the chart mean, but I'm also a you know glad Offer my insights and you know how I trade and what I look at these things at and I'm pretty familiar with the platform I've been using it for two years now, so I'm happy to answer any questions. You all have as well Bdub, I hope I'm answering your question, right? I think I understand it Basically the more convergence I see inside and outside of book map the more importance I assigned to a level So that 44 you know 71 area because the hot put is there because it's a large area of resting liquidity You know I'm gonna put more weight into that as being an important level the clearly the market believes It's important based on how it's how flow is in the zero DT is and where that resting bid is So all I can do as a market participant is say look if we if we really do push below my pivot And I'm gonna say that's about four points below where we are right now And again building some volume down there seeing acceptance that we're moving lower Then I think that that next target becomes something that we have to take very seriously that the market could indeed move lower and Into that area to be filled the other thing about large areas of wrestling liquidity combined with you know the most active put strike is That it acts a bit like a magnet each one individually has a bit of a magnetic effect you add them together That adds to that magnetism So if trend is moving that direction the magnetic effect has a greater pull Which makes it more likely that price is going to move in a way where we can say we have a bit of an edge Right, and that's exactly what trading is about. It's about finding that edge and trading against it Let me know if that helped answer your question. If not, I'm happy to look at it from a different perspective Yeah, you're welcome and really enjoy doing these feeds. Thank you everyone for joining me here really appreciate it It's a lot of fun. I'll be doing this every Tuesday at 9 a.m. Eastern So you can always join here, and then I'm doing Streams on the trader aid discord as well. So, you know, you can check that out as well We have again that 30% deal bookmap 30 and you get access to the whole stream All of our resources our content our ideas our tools. It's pretty cool To toot my own horn just a little bit here, but I am actually proud of what we're doing there and Again, you know market is still trying to decide what it wants to do So I don't see a big trade setup in here other than I think we're more likely to go lower But we haven't put in the price action to say with certainty that that's the more likely outcome, right? So I haven't taken a trade on this. I'd love to be you know Have a higher conviction and have a trade on and show you guys kind of how I would trade this But of yet we're just not at a point where I have Strong bias either way I'm leaning more towards a bit bearish based on the price action and kind of what we're seeing But not with the degree of confidence that I want to fade this I Still need to see the break below and the the acceptance the building of volume for that push lower to That hot put level on the other side if we push higher if we're able to get above gamma 2 by 4 points I think that that hot call level would be a reasonable target that around 45 15 And I've got about five minutes left on the stream here I hope you've enjoyed it If you have any questions for me as we're starting to wind down here, please let me know You can tag me in on the discord On the bookmap discord or you can also pop your question in the youtube chat and I'll be more than happy to respond And if you missed the earlier presentation and you'd like to check out that recording Once this is done, you can you can actually check out the whole recording so you can go back and Watch from the start if you're interested All right, let's go check in we see some more weakness here nasdaq again This is the one that's got me again looking at this market more bearishly new low in the nasdaq Yeah, at this point it's it's time to put on a short this market is telling us that it wants to move lower So I'm inclined to fade this Scaling into a short position here looking for that 44 71 is the downside target. So I'm going to leave you all with that trade I would get out of that trade if we push above the view app So that's that's kind of how I'm managing this because I think we're starting to see some acceptance lower Um, I'm not going to go all the way into it I take about a third of the trade and then as we move lower I'd add into that and then get out of the full position around 44 71 So I'm going to leave you guys with that trade as an idea because it does look like this market favors lower But I'm not wanting to get aggressively short into this look at that volume By the way that resting bid building on the nasdaq here continuing to make new lows Just Seems like we want to fade this thing today. We'll see Obviously, no one has a crystal ball, but that's what I'm seeing based on Everything we've talked about on this convergence and otherwise with the push higher in rates and oil You know and the nasdaq leading the way lower and it's typically the beta beast But it's also the the momentum to watch the nasdaq's led the market higher It also when we have down days tends to lead the market lower So I'm going to leave you all with those thoughts. That's that's what I'm looking at based on everything Just maybe another 14 points down from here We do see liquidity stacking below us more. That's another sign that you know, we see Larger market participants kind of agree with the idea that they could get a better price lower That they're not necessarily as interested here. You can see that 44 80 bid coming in So fun times, you know, we actually got a trade out of this We'll see if it if it gives us what we want But we actually got the ability to see the process work or we're pushing below that key level And I think we have some negative momentum to fulfill So I want to thank everyone for tuning in Yeah, I look at the overnight lows and highs for sure I I look at, you know, the weekly the daily and the intraday charts for es I don't put as much weight into the overnight highs and lows But you know as I do the the regular trading hours, but I do still contextualize that So I want to thank everyone for tuning in really appreciate it If you enjoyed this check out my work at trader a dot com at macro visor dot com Follow me on twitter and on youtube and you can rewatch this video later at your convenience If you'd like to check out the whole thing and once again, thank you all for tuning in I'll catch you next tuesday at 9 a.m. Eastern