Founder's Afternoon Notes - 2/28/2022 | Archimedes Methodologies

If you enlarge the 5-minute S&P 500 chart above, you will observe that the cash index gapped down (it was an orthodox rather than true gap) and opened between the 5-day line (red) and the Navigator Algo Trigger (purple).

The index found support on the 5-day line, retested it, then rallied up to fill the morning and Globex gap, stalling at the gap top and first resistance line identified in my morning notes at 4380,

4380 is the Volatility Trigger, normally resistant, and rests just below the Algo Trigger, also resistant.

The index then rolled over into an ABC correction, finding support at a material gamma level and option strike just above the first support level I announced this morning at 4307.

As expected, the fairly significant strips of in-the-money options (both calls and puts) at Friday’s expiration led to less trending, a tighter range, more two-way trading, and consolidation.

The daily futures candle was inside Friday’s candle, setting up a future break-out scenario.

The decline in dealer exposure to negative gamma means dealers are less exposed to short put gamma (i.e., less exposed to increasing losses with price movement lower).

The area spanning $4,400.00-$4,500.00 (Call Wall) is the key resistance area.

The stabilizing implications of trading in areas that carry more positive gamma weight are offset by heavy negative gamma exposures down below. These exposures will continue to promote more volatile ranges until there is increased clarity on the Fed’s intent to maneuver monetary policy in light of geopolitical tensions.

The window for increased volatility (and even lower prices) remains open. But the market has remained resilient thus far.

We are in one of those times where investing and trading are counterintuitive. It is tough to deploy capital mentally. I am just as vulnerable to fear-mongering as anyone, and we are somewhat navigating in unchartered waters. Yet, the best investments come at such times, as long as the market has discounted the risks.

Geopolitics concern me – but I fear our government more than anything else. The media complex is pounding narratives as they did with Covid. “Putin wants to reassemble the Soviet Union.” “Putin is showing signs of mental deterioration.” I don’t buy any of it – I am concerned the power elites are conditioning us for war.

Suddenly, all of the draconian Covid mandates have been lifted – even in New York. The W.H.O. is quietly circulating a treaty requiring countries to surrender their sovereignty to them in any future pandemic. You know the old magic trick – “look over here, not over there.” Ukraine is the new “Covid” crisis with all the same tricks coming your way.

I am concerned that the Davos crowd is behind all of this. Russia is a threat to the Great Reset and New World Order. People in Russia tell me they feel threatened by the Davos money laundering crowd raiding the U.S. Treasury and expanding their operations in Ukraine after the Afghanistan scams shut down.

Heavy Davos-backed military have been conducting operations in Ukraine. How would we react if China and Russia conducted similar operations in Mexico? And of all countries, Ukraine? Why not just agree to keep Ukraine neutral?

All the impeachment witnesses against President Trump over the Ukraine phone calls are the same players drawing us into this mess. Victoria Neuland, Alexander Vindamin – we know them all.

How about noting that President Biden was in charge of Ukraine as Vice President? It is the country with the energy company paying off Biden through his crackhead son – Hunter Biden at the rate of $1 million-plus per year. How can this all be a coincidence?

And is it also a coincidence that Russia was the foundation of the Clinton Campaign’s fraudulent collusion narrative against President Trump. It was another attempt involving our entire intelligence apparatus to impeach him. Davos hates Trump and Russia. Russia only has two genders, men and women. They are not “woke” nor do they want to be a “woke joke.”

There are no coincidences. These events are all connected. We cannot idly accept the propaganda issued by our government and its media allies. We need to be very careful about what we believe is accurate. Even Hillary Clinton and the corrupt Clinton Foundation have their fingerprints all over Ukraine!

When the same corrupt players keep showing up over and over again, grab your mind and your wallet before you lose both. That is what keeps me up at night.

Updated trading levels will be published in the Morning Notes.

A.F. Thornton

Founder’s Afternoon Notes – 2/28/2022

Founder’s Afternoon Notes – 2/28/2022

AF Thornton

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Founder’s Afternoon Notes – 2/28/2022

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