 Hey folks, how's everyone doing out there today? So we're gonna talk a little bit about what's going on here in the market looks like it's gonna be a bit of a nasty day out there really So first I want to introduce myself for anyone out there who's watching the book map stream and is not familiar my name is markets in mayhem and I've been using book map for a couple of years now been trading since 2005 and And I really enjoy looking at resting liquidity as a component of my broader trading strategy So what book map brings to the table with its ability to look at a heat map of where the transactions are where the big players Are trading really helps how I trade but then adding to that I also like to look at other areas like options open interest volume profile and put the whole picture together So let's start putting that picture together. Let's talk a little bit more About me first and then we'll talk about the market. So just a brief intro if you don't know me and trading since 2005 As I mentioned I cut my teeth actually trading during the dot-com bubble, but it was my first trades only did to Yahoo and Amazon They doubled about the next day and I said that's enough for me. I didn't understand what was going on there I thought if everyone could make money that easily no one would need to have a job, right? So I took my funds I parked them on the side I started reading more about the markets Of course the dot-com bus played out before my very eyes not long later And that taught me a lot about the excesses, you know You can have a lot of greed you can have a lot of fear and often the truth is somewhere in between And so I started to learn more and more about trading. I worked my own jobs I saved up my own account. I started trading my own money in 2005 building up enough Profits from that to start investing in 2006 and I did navigate the great financial crisis as a trader It was one of the most intense experiences of my life as a trader waking up some days where it felt like the Dow is gonna Be limit down the Fed would intervene. We'd completely do a 180 you'd have a thousand points in a day Back then with the Dow as low as it was a thousand points was a pretty big deal So I like looking at the market from a flow sentiment and positioning perspective. I also like to look at the macro I'm a systematic trader. So I do have pretty rigorous systems in place then the reason I do that is a like anyone else I'm human. I have emotions. I like to keep myself out of trouble. I don't want to take trades that don't comport to my system So I have a better chance of maintaining some kind of edge But be also I found that once results over time become better more consistent when you have a systematic approach Psychology of trading how you're managing your risk how you're capturing your reward how you're entering and exit Exiting positions actually matters a whole lot for your overall long-term results And so a little more about me if you're interested in my work you can visit trader a comm or macro visor comm trader It's for shorter time frame traders We're looking at futures options and stocks macro visors for longer time frame traders and investors You can also check out my youtube its youtube comm slash at mayhem number four markets That's mayhem four markets and if you if you're interested in book map if you like what you see in the presentation today You can get up to 40% off using the link trader a comm slash book map or if you want to check out trader aid the service that I'm I'm gonna talk about some of the tools I built for Basically book map that's only available on trader if you're interested in trader aid you can get 30% off at check out using code book map 30 at trader a comm So let's go through the legal ease shall we the general disclosure all book map limited materials information Presentations are for educational purposes only and should not be considered specific investment advice nor recommendations Trading futures equities and digital currencies involves substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of future results fair enough and there's the rest of the fine print there and So this presentation is like every other that I've done for book map It's called coalescence as a compass because I like to take all these different data points and put them together and Come up with an idea as to how the market may trade and where my key areas of interest are going to be based on that so First we're going to look a little bit about the S&P 500 full chain game exposure. We can see just above us That's the biggest level that is on the full chain Positioning for gross gamma exposure. It is also the second biggest level of net gamma exposure So that's likely to be a pretty important area just overhead and and for those out there not keeping track of the Delta the Delta between Yes, and SPX is about 37 points 3775 So, you know 4300 is going to be 433775 on yes Just if you're keeping track at home, that's a pretty important level. We bumped our heading against it yesterday We could not but push above it and I think that's going to be a pretty important area to keep an eye on now today We're set to start almost 1% below that level. We're set to start Basically down about 0.5% at the cash open here in about 22 minutes So we're farther away from this level But it's still one I want you to keep your eyes on for the rest of the week because there's so much positioning up there And we have managed to break and close below it. It does seem like that's Something to watch as a potential ceiling So let's look at those key SPX options levels to watch you're welcome to screenshot this and save it for later These are levels that are obtained by using my algorithm to examine the full chain of S&P 500 options on CBOE It's about 10,000 of them So it's looking at about 212,000 data points it up that actually updates those data points every minute during trading hours for a trade raid members on our discord and our website and The reason for that is because even though this is full chain exposure about 55% of options trading is happening zero DTE So those options are being bought to expire in six and a half hours or less So understanding how the full profile is evolving throughout the day is important to understanding where some of these key levels may be and We are pretty deep in negative Gamma territory here In fact this morning even further below but the flip level that our naive model Which looks at all puts is negative Gamma and all calls as positive Gamma that flip level is 44 13 So that would be about 150 points above where we are right now meaning that we're in an environment where there is more likely to be Dips sold and rips bought by dealers in this change of hedging dynamics And this has been the environment that we've been in for several weeks now So you've probably heard me talk about it before if you've been on the stream or if you're watching other folks That are tracking this in the options market why it's important Well, there's other elements of this and one is that it may even set up trading opportunities So if we look at what negative Gamma does to the VIX typically you get a larger Moves in the VIX in negative Gamma territory You also get larger moves in the underlying the S&P 500 in negative Gamma territory So it makes sense. It's something to take into consideration Because if we're in an environment where we're going to expect larger Volatility movements and larger price movements in the S&P 500. What does that mean for sizing? It means sizing stops, you know Sizing positions probably good to take on smaller positions may need to use slightly wider stops with that type of volatility Not get completely blown out and I think that this is an environment where it pays to be extremely tactical Only take trades that set that are, you know, basically going to comport with your system if they don't there's no reason and Hedging demand remains subdued This is a chart of the S&P 500 skew if you're not familiar skew is the difference between the premium paid for puts and calls on the S&P 500 index options and Seeing this as low as it is when positioning has dropped as well is not too surprising What you're really seeing is people are taking off their sort of fire insurance as they downsize the building they're insuring, right? And so basically they have less positions. They're taking out less hedges against them and Brett this negative here on the New York Stock Exchange McClellan oscillator But it's not yet oversold and so we don't get in you know an immediate pop just from Exhaustion alone on this reading It's just telling us that we are seeing more determination from sellers wider breadth in their selling but so far no exhaustion and Retail sentiment continues to drop. This is a measure called a AI I we're looking at the bulls versus the bears and It's really close to the lowest. It's been in 2023 not quite there But close and what this is telling us is that the bears are getting a little bit more confident The bulls are losing their confidence and we're starting to see an environment where retail are exiting positions now remember Most folks out there are long only particularly true of retail Why does that matter because when we're looking at this positioning statement? We're saying some of these longs are probably starting to take down their positions They're not necessarily going whole hog short, but they're taking down their long positions scaling out of them You know and that's something to take to take into consideration because the professionals are doing the same This is the n double a im Managed money survey and it's showing us that their positioning has also dropped Towards the lows of 2023 not quite there yet We saw that during august, but it's another measure that's important because what is it telling us that we're getting We're seeing this out of sort of a washout effect right last week The theme was the neutral zone now. We're seeing actually a little bit more bearish sentiment and positioning overall Again, it's not an extreme in any of these measures, but it is starting to tilt And the mega caps versus equal weight are we topping out? I don't know that's not for me to say, but I can tell you we've touched the top of this range Three times the last two we were rejected if this time is different We'll have to see but this does suggest that the mega caps versus the equal weighted market Are at the highest levels that we've seen all year long again Or kind of right back to where we were in september And that's important because it just tells us things are getting a little stretch There's about 10 stocks leading the whole market up and down And ctas who are momentum driven traders are more likely to become buyers On the margin of the s and p 500 in about Say 60 70 billion dollars in size if we get a shift in momentum higher That's a pretty tall order given the Pre-market opening dynamics that we have today But over the days ahead if we do get that buying pressure if we do start to push up above Some of these key levels that we'll talk about That could unleash some of that marginal buying pressure from these momentum traders that be covering their momentum shorts And maybe even starting to flip long So that's something to take into consideration in the background because we are in the beginning of the month We do have beginning of month flows Coming into equities from some of these managers Right they every month and really the first week you're going to have pensions and retirements and insurance Doing some of their positioning you also have beginning of the month flows from delta and theta decay or those Vanna and charm flows that can come in and help to at least buffer downside So there are some of those flows happening as well But on the other side there's a full buy back blackout happening So those passive flows from large companies that were buying back their own shares are pretty much on pause For a bit. So the biggest areas of support from flows that we'd be looking for would be beginning of month The vanna and charm and cta. So those would be areas to all kind of keep in the back of our mind Partially being offset by the lack of buy backs and some of these dynamics that favor sellers They are definitely enjoying a technical advantage here And let's talk about that technical advantage. Here's a chart of es. It was taken before the presentation So of course, it's not real time right now. We're sort of bouncing on this lower area You can see that lower dotted white line Is right below the high volume note. And so we've had these sort of Lookdowns and so far there's been a bid there Okay, so this is going to be my pivot level for sales today If we look at this level and we break below it And I mean we got some decent momentum. Let's say seven eight points below I think sellers are going to have a pretty good advantage to push this thing even further down So this is an area to watch very closely for me as the sell pivot the buy pivot would be above this point of control This is a one hour chart. The point of control is just there around. I think it's about 43 15 I have the levels mapped out on on a Slide just a little bit later on But essentially we're looking at two areas today because we need to get out of the range we're in For me to be interested in taking a trade. You'll notice with rsi. We are Getting closer to oversold, but we're not quite there yet. So what does this all tell us? Well, we need to figure out what the market wants to do right now the way that it's trading I'm not interested in any trades in the here and now. I'd be interested in a short below You know Basically a decent break below that white line or along above that point of control Those are the two areas that I'm watching closely to get an idea as to whether or not I'm going to want to take a trade in the tape today We do have an event volatility catalyst as well. Jolt is coming in at 10 a.m If it comes in weaker than expected that could be good It could give bonds a bid and it could give some of that longer duration risk And even the broader equity market a bit of a bid sounds weird to say Oh, if there's less job openings, that's good for the market But the reality is the way that these algos are calibrated They're looking at lower job openings as the potential for lower inflation lower rates less resolved from the fed That would be bullish for risk. That would be bullish for rates. And so that's kind of what I'm looking at for that jolt's number at 10 a.m. I think that's going to be an event volatility catalyst to keep an eye on And let's zoom out to the s&p over daily chart You can see it's testing its uptrend line that it made back in october That was when we put in a bottom and really started to build out and eventually make a pretty decent rally Now we're testing that entire uptrend again And that's not a good sign for the bulls who need to step in asap if they're going to defend it This is the time right here right now a break below this trend line on a closing basis would set us up For a bigger move potentially to getting all the way down to that point of control area where this market has liked to base And really that's an area that could act like a bit of a magnet here if we are breaking much lower So i'm going to be paying very careful attention on the broader chart to this trend line that we're set to you know open below But remember i'm looking at this as how do we close on it? So i'm not as interested as if we open below it for today's trading as if we Close below it if we do i think that would set us up for decent shorts on the swing time frame Where we get maybe a back test of that trend line and fail I'd be interested in shorting that kind of price action now below You can see the rsi is pretty oversold once again. This is not a market where there's exhaustion But there are signs that the sellers have been very aggressive and you know oversold can get more oversold Particularly if you're having a shift in momentum If we're going from a sort of bullish trend to a more bearish trend then this could get more oversold So I don't want people to look at this and say oh rsi is washed out that immediately means we're going to bounce We can't look at it at that alone in a nutshell. There has to be more to it than that So let's see what some of the other signs that we get both intraday for our shorter time frame trades And then also what we see on a closing basis that may set up some interesting longer term swing trades So today's price action is going to be pretty pivotal in my opinion Next up we've got the nasdaq and the nasdaq's actually looking worse in the s&p in terms of its trend line It does seem like it's threatening a trend break here again looking for that close below But we are very much on the razor's edge here and we're also looking at potentially Dipping into that lower volume area around here Just below price and if we did that could get things much that could kind of potentiate volatility in the nasdaq Why because that's an area of the auction of the volume profile where there hasn't been a lot of Activity where people don't really want to transact and I think that could add to volatility as well in both directions Now we're going to look at the 10 year note futures Why because rates are playing such a big role in this market And I know it might sound crazy after a year where they didn't seem to matter But in the last two months they have and I think they're going to matter more and more This 10 year note is breaking down now. It is very oversold. There certainly eventually could be a pop here But we've been in this downtrend for the better part of two and a half years So I know folks are getting more bullish on bonds. I get it You know, we haven't seen rates like this in 17 years But to me if you're trading the long end if I can go out and I can buy a 30 day exposure a treasury bill or a 30 week or even a 30 month exposure You know like basically a three year note. I'm still getting a higher yield on the short end than I am on the long end that disconnect Why would I want to lend the government money for 10 years or 30 years at a lower interest rate? Then I would want to lend them at 30 days 30 weeks or 30 months Okay, that doesn't make sense and that tells me there's more room for these rates to move higher in the long end Because I don't think the short end is going to start to fall unless the feds resolve is more thoroughly questioned So that means that you could have more pressure against equities particularly the longer duration stuff You know biotech growth the unprofitable companies things that are more speculative Keep a close eye on these rates and we will be during today's trading session through book map I love to watch the tn contract and book map if you watch You know market futures on book map. I like to have the es contract the nq contract the tn contract Right for the 10 year futures or the zn whatever you prefer As well as the cl contract because oil is such a mover these days and it's causing some fear And I think understanding how it's moving in the intraday price action is an important dynamic to keep track of So let's talk about crude over the daily chart here bit of a rejection Remember last week we're talking about this area and I've been talking about this area up above us pretty much Since we started bumping our head against it I don't think the move in crude is over But positioning is crowded ctas are super long crude um a lot of managed money is long crude here as well And we're getting to a key area of technical resistance and being rejected there Do we consolidate and start to shift higher from the 20 day moving average? We'll have to see we're certainly not overbought anymore But at the end of the day, I think caution is advised in crude futures Some of the energy stocks may still be interesting because you know from a relative point of view They're still attractive their valuations in many cases are still attractive compared to the broader stock market But in terms of crude itself, I think it's a good time to be a little bit cautious here Wait to see if we get a bit of a reversal, you know from this consolidation We've seen before wanting to enter new longs And here's gold and gold is just absolutely getting trounced now This is one of those great mysteries of 2023 for a while gold didn't seem to care about interest rates And you could classify that as one of a number of things it could be considered relative strength Which for a while it was you know gold was showing relative strength versus where it would typically be in the positive correlation That it enjoys with 10 year note futures So there is this large gap that was forming between 10 year note futures falling and gold staying resilient now gold's starting to break down And I think it may be setting up for its catchdown. It's also deeply deeply oversold So this line that I have drawn this dotted line Is kind of where I'd be looking for some potential support because that's been an area in the past where we've seen both support and resistance Or I think we could get down there and get a healthy pop So for those out there that are looking to swing trade gold or even intraday dynamics keep an eye On this level and how we behave if we get a nice pop there that could lead to some continuation back up To the point of control or at least a half back rally And I think that would be something that would get me interested in taking a very short term, you know, either short swing or Short-term swing in gold or possibly an intraday trade depending on how we're reacting to that price level Finally, we have the dollar here and this one's been giving a lot of folks nightmares because first Well going back to march april may of this year. There's a whole lot of folks out there thought the dollar was going to be Significantly Marginalized and it wasn't instead it actually found its bearings and started to rally and now it's really really strong I mean kind of scary strong because there's a lot of revenue in the s and p 500 that comes in from overseas I want to say it's like 35 maybe 40 So every time the dollar goes up that revenue is being compressed right companies aren't dynamically Hedging as well as we'd like to think they are so that actually has a direct impact on What earnings might look like what revenues might look like for these companies? But the other component of it is A strengthening dollar is typically negative for the markets and as rates rise The dollar rises as well because the disparity in interest rates between the us and other countries grows Favoring the dollar. There's also some signs that the us economy is stronger than that of many of our peers Including the largest cross trades like the euro the yen and the pound. So that also favors the dollar So let's sum it all up because we're five minutes out from the open I hope I didn't put too many people asleep out there. Of course, if you have any questions feel free to pop them into the youtube chat And I'm getting a little feedback in here So just make sure that you're muting your mic if you're on the discord with me and I appreciate everyone who's here So we're going to sum it all up Bears have a technical and momentum advantage going into today Now it's funny because I wrote this last night. I actually didn't write this part Today, but you know, we can see pre-market that that's already starting to play out Volatility may be elevated But we do have a supportive passive bid from those beginning a month flows, right? The beginning a month pension and retirement funds and other allocators as well as those delta and theta decay flows Those are supportive. We don't have the buyback flows. We may get cta's in as buyers on the margins if We can push higher pretty meaningfully. I'd like to see it above 4,300 spx or above 4,337 50 On es to really say the cta's might start covering the shorts for right now We're uh, just shy of a percent below sentiment and positioning have been washed out as we were looking at those prior charts We have seen a pretty decent Cleaning up of extended positioning. Remember in july We had the highest levels of sentiment and and bullish flows as well as positioning since november of 2021 Which is that euphoric market top that really marked the top in 2021 We had another one of those episodes in july. That's typically not a good look It means the bulls are off sides are way too aggressive Foaming at the mouth getting super duper long and that's a good opportunity to take profits It doesn't mean blindly short everything under the sun It does mean start to take some of the chips off the table because in all likelihood You're going to be you know, if you don't you're going to be rushing past other people trying to do the same at lower prices These things when everyone's in the same trade, you know, the the fact is it gets a bit lopsided So take that into consideration because now we're not quite on the opposite of that We have washed out that excess sentiment People are more bearish positioning is more bearish Momentum is more bearish Brett is more bearish So we're not quite at exhaustion for sellers yet But we're not too far So above es 43 15 is my bi pivot level Below 42 95 es is my cell pivot Okay, so those are on the charts that we were just looking at earlier And this is really based on the auction the hourly profile And the reason that we're looking at these is because I think that we've tested this lower level this 42 95 Level now it's been tested three times really in the last two two. Yeah about two trading days here That's knocking on a door that eventually could open If we open this market and start to push meaningfully below there and can't catch a bid That's going to that's going to set up some decent short opportunities Not only in the broader market, but some of these stocks that have some frothiness left in them as well SPX 4300 or es 43 37 50 remains a key level to watch Because that is the largest area of gamut exposure on the options profile And it's likely to act as a ceiling pushing above it. However, if buyers get that kind of strength Could unlock additional upside momentum just like falling below 42 95 Could unlock some additional downside momentum And so we're looking at these trades as right now when the market opens. I don't have a trade on And looking for the market's price action to tell me what trade is most likely to be in favor And that's what these levels are about. I'll also be watching the opening ranges So for me to qualify a break above or below a pivot I like to see about eight handles of a move. That's eight points On the s and p and I'll be watching the 20 and 30 minute opening ranges today. So from 9 30 To 9 50 and 10 those are the two key opening ranges I'll be watching jolts at 10 a.m. Could add volatility in the market and rates in the dollar are worth watching As they've both been headwinds So we're going to now close out of the presentation and go into book map So if you're on discord, just give me a second to switch over Oh, that's not the right one There we go All right, so we got a bit of a pop out of the open in the nasdaq here that is on screen I'm going to take a look at the spooze here pop there as well You can see yesterday's most active put level charted on the screen. Those are updated every minute once we start getting flows And while we're opening here. I welcome any questions that folks have on the discord or on youtube Little bit of that initial buy being sold into here that pop being distributed into Not too much volume here though on the open so far Let's check with our spastic friend the nasdaq who likes to move all over the map And it's a similar look here You did see some stops triggered here on this move upward. You had some buy stops triggered So some shorts pushed out now. We're starting to see a little bit of a reversal. Let's take a look at rates This is the 10-year futures contract. This is a zn contract on cbot It's pretty liquid contract. By the way, you have like these 3k bids just casually hanging out Rates are still continuing to push a little bit higher Particularly on the 30 year by the way the 30 year bond looks atrocious. It's actually kind of scary how bad it looks Just in the sense that that long end could have a lot more room for rates to move higher for things like tlt to move lower I know a lot of folks are trying to get super long tlt and you could get a pop There is a decent area in the volume profile the monthly profile where we're basing into But it's a risky proposition here for me for fixed income I like bills And I like them on the shorter end and that's it like 30 days 60 day, you know, that's about it the most exposure I want to have to treasuries right now in terms of duration Let's look at crude crude has been building Okay, so this is actually kind of important because this tends to put upward pressure on rates So seeing crude catch the kind of bid that it is where it's basically, you know, it's up over a buck here From where it was just 20 minutes ago That might give folks a little bit of concern over there in the rates market So we'll have to be keeping an eye here on zn throughout the day. Let's go back to equities here though You see a little bit of institutional buying those icebergs being triggered if you see that e 900 slash 2 That is an iceberg order that is being executed to purchase contracts and that's 900 contracts of es That was identified by book map as being purchased. So this is kind of cool Because you see a little bit of a war sometimes play out between the icebergs and the stops The icebergs tend to be larger institutional flows. The stops tend to be smaller traders So we're not seeing any kind of dichotomy today that suggests there's a trade opportunity between the two But at least understanding that flow actually gives you a little bit more of an edge Because you understand kind of where price is moving which which components of the market are really participating And so if I want to get really bullish on a market that's going down and I feel like there's going to be a reversal What encourages me a lot is to see that iceberging in to see institutions accumulating more and more exposure to futures Because that's giving you the impression that yeah, maybe they're serious. Maybe they're actually gonna You know keep accumulating here and pushing price higher So if the price action validates the flow and you start to see that reversal That can be pretty helpful to set up a trade And then you can start looking for levels of resting liquidity volume profile and key options areas Where you may be able to make your exit and also manage your risk You're welcome wingmaster. Thanks for tuning in And thanks everyone else for tuning in really appreciate it. If you enjoy this feed feel free to share it with your friends This is something i'm doing every week on tuesday for book map We are a partner of book map over at traderade So if you ever want to get 40 off book map you can visit traderade.com Slash book map scroll the bottom under specials and you can see those deals And we're still kind of consolidating we're going to zoom in just a little bit here That's one of the cooler things i also like about book map But you can just zoom in to levels of granular detail that most charts They just don't really give you much you can see a lot more about the sort of plumbing of what's happening in liquidity and book map here Like here's a large resting bid that just appeared below us, right? That's important because often is the case that that can act a bit like a magnet And so seeing that much appearing below us. You got that 604 combined bid here. You got the 320 bid here the 341 just moved lower to that three now 352 That's just telling us that there are larger players that are interested in buying here at lower prices And this is an auction so you got it the the price has to go to where liquidity is particularly if it's not a very liquid day So let's keep an eye on that resting liquidity. See if it starts to build below us You can see someone shifted their bid here possibly higher So, you know, you could have someone who is taking that 303 contracts and shifting it up to this level potentially Or these could be completely different players But at the very least it's giving you a sense that they're interested in buying Just around that 4300 Level remember 4295 is kind of that that pivot that we'd be looking at which was also Not coincidentally at all yesterday's most active put Level, right? That's the most active strike on spx zero dte options yesterday was that You know I guess it would have been Like a 42 60 or so And you're still seeing those levels act a little bit like magnets here And the rounded delta today it actually is down two points just got calculated by my algorithm So the rounded delta between es and spx is 35.75 so actually down about 1.5 points Let's shift up to the nasdaq And it is a little bit more frenzied. It does look more constructive than yes right now though It's actually starting to build some volume at a higher level. We can see the point of control shifted upwards that is constructive We see the point of control shifted modestly upwards for the es not not quite as much as nasdaq Rates are coming down a bit, you know, the inverse relationship between price and rates and we're watching that xeon 10 year note contract here And we do have Really large bands of liquidity on this thing So this thing doesn't tend to move too erratically without an event volatility catalyst, which by the way We have in 22 minutes with jolts That could be big a big deviation in jolts Could give this market a jolt if jolts come in way weaker than expected I would expect bonds and stocks to get a bit on that because it's going to Basically give algos the sense that maybe the fed is closer to done On the other side of that if jolts come in materially stronger than expected I would expect that Bond sell off and stock sell off because it's going to show some reacceleration in the labor market Which is not what people Want to see sadly market participants are really looking for softening in that labor market to alleviate some of the concerns about inflation And what the fed will ultimately have to do to try to subdue it Crude is also building a higher point of control here, which makes sense It's been building volume around this level this 89 20 level For just about 20 minutes now Really about 35 minutes now So this is this is an area that's worth watching if you're intraday trading crude. It does look more constructive We will be wanting to watch how it trades because it has a relationship with rates And you do see a decent amount of resting liquidity above for this contract like 108 for the cl contract is decent And if nasdaq was giving us any clue S&P seems to be following that remember we're still in this range here So i'm not yet interested in taking any trades just yet Challenging that point of control And i do like to map the point of control on book map. It's that yellow line the view app is this white line Okay, these are important levels to keep an eye on just whether you're watching the market for An idea of how other stocks might be trading or if you're trying to trade the s&p 500 It's a very quick At a glance way of knowing if the bulls or the bears are in control Now we're challenging the point of control. So it's sort of like a tug of war between the two teams You can also see that liquidity below us has not gone away It's actually pretty reasonably sizable And that does take us down if you're watching earlier to that level We were looking at on the hourly es chart where we've knocked on that level three times and have yet to break below But um that 42 95 a meaningful break below that could be nasty And in other market news The uk is following in the footsteps of the us looking to Probe into amazon and also probing into microsoft's cloud dominance and amazon's cloud dominance basically Fair to say it's a bit of an oligopoly in the cloud. There really aren't that many players So that'll be interesting to see if anything comes of that price is starting to get a little bit more of a bid We see some of these resting liquidity levels below us vanishing. This is a big deal Okay, let's see what happens with price here, but seeing those those resting liquidity levels move away Is constructive Let's see if they moved lower. They did not so that's that's actually a good sign You also have a decent amount of resting liquidity starting to build and and and even increase above We do see some institutional accumulation, but it's modest. There's about net positive 963 icebergs And I think that you know watching the way this is trading you all can probably see why I don't just fomo into every Potential trade. I really like to be systematic in my approach because this is extremely choppy You could be right, but you could be early and you could get stopped out and lose money Which is why it's important to be disciplined and systematic and really Use the price action of the market and its volatility to your advantage to get better entries and exits That's what a day like today would be about for me because it's likely to be a higher volatility day given some of the dynamics that I discussed earlier We're a negative gamma territory for one Um, we have the pause on buyback You know share buybacks, which is another large source of passive flows And we're at these really key very interesting levels in options in the volume profile So there's just a lot of kind of decision making here, right? Are the sellers going to push things to a new level of bearish momentum or the buyer's finally going to step into this key area of the s&p 500 trend line And really try to defend the rally that's that you know, where the bottom was put in october and it really started in late 2022 Thank you pass beat up. I I don't have my bookmap settings Documented as such if there's something specific you're interested in Let me know and I can try to walk you all through that But basically what I've done to customize my book map over time is to try to make it You know at a glance actionable Also, the rightmost column that you see under options that is something that I actually built myself So these are key options levels from the s&p 500 index options translated to bookmap levels We can see right now. We're getting close to a key area of net gamma exposure And we are defending that lower level right that 42 95 So far it looks like the market wants to defend that level which is constructive, but again pretty choppy here If we're talking about a 15 minute opening range We're we're going to be now Establishing that range and we're going to see whether there's going to be a break above or below But I favor the 20 and the 30 particularly on openings like this where it's very choppy Let's look around the market a little bit again Here's the nasdaq. It definitely looks overall better than the s&p But you can see the beta the high volatility in the way this trades If you're not used to trading the nasdaq and you're interested in trading it Make sure that you're taking on smaller positions Because you're going to need wider stops. It's just the you know how this thing trades and how it's all over the map You've got to be very mindful of that risk You can see there's some institutional selling into the strength of the nasdaq not a lot but net negative 527 iceberg contracts So that just means that as we're pushing up here and you can see two of the bigger ones up here there was Some institutional distribution. There were also some shorts some smaller traders getting stopped out with buy stops Rates are Dropping a bit the 10 years firmed up. It is above its point of control and view apps are technically constructive You did see some decent institutional distribution here though into the strength And crude oil continuing to sort of chop in this range is challenging its point of control Overall has a constructive look going into this morning. It reversed Losses earlier and is now marginally in the green And we should have our zero DT ESPX levels populating shortly here. Yep. Here they are We've got our puts starting up on Yes, that's going to be about 42 76 or so And our calls way up here At just over 43 50 So these are tools that I actually built myself scraping data from across all of the cboe options exchange And then converting that data into es levels So there's about 212,000 data points or about 10,000 contracts That are updated every minute to provide this view that you really can't get anywhere else on book map It's kind of cool. And it's something that right now is only available on the trader aid plus discord But eventually I'll be making a plugin for book map that shows similar So if you're interested in book map, you can get 40 off or up to 40 off by visiting trader aid.com slash book map You can also get up to 30 off trader aid itself Using the code book map 30 at checkout And this area of Put activity These can become a bit magnetic particularly when you have these large levels of resting liquidity Converging right coalescence is a compass. This is that coalescence that I'm talking about Where you've got the most active strike just right near this very large area of resting liquidity Making it more likely that it will be filled You because you have those two guide points that are telling you the market's very interested in this level Okay, so beat up the the bottom graph here that you see We are looking at liquidity differential icebergs stops and cumulative volume delta And so those are the radials that you see on the the lower right and you can put those in you just need to have rhythmic data As your data feed and you need to have the mbbo plugins Um from book maps marketplace and then if you have those both set up You can you can put the icebergs and stops on your sub chart for the liquidity differential I think it's the liquidity tracker pro plugin that you need to be able to map that out And then cvd is built in To book map So there are some changes that you need to make to your configuration potentially your data feed and your plugins to allow this But uh, I find it very helpful personally And we're we're kind of bumping our head against that that key level notice again There's a large area of resting liquidity at this key options level seeing that convergence means it matters more It also may be an area where we see a bit of resistance Now from an opening range perspective, we are starting to Define the top of the 20 minute opening range. We're breaking above the 15 minute opening range So for those shorter term scalpers and day traders. This is looking like a breakout potentially Let's look at the nasdaq. I imagine it's doing the same kind of thing Yeah, breaking to a new high. There is some some gappiness to this too here There's probably some spread crossing happening behind the scenes You do have a tepid bid here in rates Still some institutional distribution And crude is continuing to chop sideways You're welcome bdub. Good question So i've got a hop in about 10 minutes if anyone has any questions or Anything that they want me to talk about on book map or otherwise. Let me know You can always rewatch this video if you missed the earlier part where I go through How i'm looking at the market You know I would recommend checking it out if you're going to be coming to this stream every week Just to get a better sense of how i'm trading and how i'm looking at different areas like volume profile resting liquidity price action and options Positioning to get a better sense as to what some of the key areas To watch for the market will be Now markets looking constructive here. It's it's hard to say otherwise It's looking like we're getting that breakout from the 20 minute opening range We still have not yet pierced the level that would make me interested in buying here. However We're still sort of chopping in this range that I showed on the es hourly chart earlier Now if you look at where that hot call is where there's 2000 Traded so far and there's been 4 000 puts traded so far So obviously the put buyers are pretty excited here, but and we're just talking about these strikes not the whole chain But that hot call ends up mapping out exactly at a 4,300 spx So that's a really important level. We talked about it earlier on the prep as a potential place where you know, we could see some degree of Resistance and also interest we are touching the volume profile area that point of control that we talked about pre market Right 43 15 on es that is the point of control breaking above it sets in motion the potential for a long So let's see how we go But if you're an opening range trader you're already longing this market here because you've gotten that break above the 20 minute opening range And to manage that risk I would be looking at this point of control as stop out right So you break above the opening range maybe get long here stop out here if it doesn't work Just below that point of control and into that view app And this point this point of control on the hourly chart this 43 15 level It's a pretty chunky area of the volume profile going back the last couple of days So it could kind of get kind of get stuck in there That's one of the reasons I wanted to see like seven points above as a push or eight points above as a push to say Okay, we're really breaking it if we do get that push I would say long all the way to 43 34 43 35 and that's it because then you're getting up to that 43 hundred level of Really really big options positioning and I don't think it's going to be just a clean break right above I think it's going to be a lot of chop around that level And even here at that point of control we're seeing some degree Of pushing below testing that level resting liquidity building into that level as well You can see a seller has stepped in with a resting offer just about 43 16 You can also see resting liquidity below us is diminishing. This is a bullish look when you see liquidity building above and Kind of thinning out below that tends to be good for upward pricing now coming up in about six minutes is jolts And the forecast for that is 8.81 million The last number was 8.83 million a large deviation in either direction Could add some more volatility to this market jolts comes in materially lower than expected. I think we get a bid in fixed income and a bid in equities particularly the nasaak I think if jolts come in materially higher than expected these the overnight sell-off kind of resumes and intensifies and rates move higher And I know some folks say well, you can't day trade off macro, but the reality is sometimes you can In data points that come in materially different than what the market is expecting Because then you have a large amount of positioning that has to be rebalanced and these high frequency traders are Going to take advantage of that as well. They're going to try to arb that And so that gives us as small fish that are swimming in a sea full of large sharks to swim behind the wake If we get that kind of price action, right? So that's what I'd be looking for coming up in about five minutes I think that's where we're going to get to kind of get our decision here as to what type of day is this It's just going to be a a trend day up or down or is it going to be sort of a chop And I think adding to the potential of a chop would be we get a jolt number right in line expectations Probably would just say, you know, not really provoke any kind of reaction one way or the other And there's no reason we can't sort of get stuck in a range chopping between 42 95 and 43 15 and es that's a pretty Important area that we've been building and building So since we're five minutes outside of an event for me, I would not be taking any new trades here If I was in existing trades, I'd be managing my risk carefully Because even though jolt seems like oh, what's the big deal? It's just like job openings and quits Well, when all eyes are on the labor market and people are looking at that to infer what the fed might do next It actually ends up being kind of a big deal And folks, if you're enjoying the stream, feel free to hit that like button Positive feedback helps it also helps to bring the stream to others attention And consider following me on youtube. I've got my own youtube. It's mayhem four markets mayhem number four markets And I just popped that link in the chat in case anyone was interested in that 40 off discount special We've got with book map As we wrap up here, I've got less than three minutes left You can also check out trader a dot com at checkout and get 30 off using the code book map 30 And we do have on our discord the book map stream with these s and p options levels as well as a number of other unique and exclusive tools And a pretty awesome community of traders if I don't say so myself I know i'm talking my own book so to speak but we do really like what we've got going on over there It's a very welcoming place for folks of all skill levels No, I uh bdub I keep book map open all day. I actually have an all day all night book map stream So I'll randomly pop into my own discord and check my stream out too and be like, oh cool Like what's going on during glowbacks or what's going on during pre-market? Um, I find it super handy To have it open all the time and I look at multiple asset classes in it as well when i'm trading because those Intermarket dynamics are helpful for me to be able to get a better idea as to what the probabilities are for some of these outcomes so I I think book map is one of the best trading tools that exists because there's not really anything else out there like it and visualizing resting liquidity and activity, especially when you add in this options tool that I built I feel like it gives us an edge as retail We're getting some of the kind of data that's really exclusive and privy to institutional traders And we're able to use it to effectuate our own trading approach You're welcome. Thank you everyone for tuning in really appreciate it. Remember, we got jolts in less than two minutes. This is going to be a big one potentially any significant deviation from expectations could set into motion some pretty decent volatility So jolts comes in way lower than expected expect a bid and bonds and equities way higher than expected expect Rates to sell You know move higher and equities to sell As well, so that's been my presentation for today. I'm going to wrap it up here. My name is markets and mayhem I'm from trader aid and macro visor. If you enjoyed my work check out my websites Check out my youtube and I look forward to seeing you next Tuesday right here at 9 a.m. Eastern until next time. Good luck trading