Good Morning Income Hunters,

Short Term Resistance: 4,550 SPX Call Wall

Short Term Support: 4,500

Risk Pivot Level: 4,500

Major Range High/Resistance: 4,550 SPX Call Wall

Major Range Low/Support: 4,400

The NFP print is now a critical report with the weakness shown in job openings …  If the report is weak combined with the holiday weekend expect Implied Vols to continue grinding lower and will provide a tailwind to stocks into the week of 9/11. 

Heading into SEP15 OpEx CPI, quarterly Sep OPEX & FOMC. Vol could then pick back up and trigger another turndown.

A strong rally into OPEX and VIX Exp would wipe out the renewed positive gamma rally we currently experience. This could make the downside into the end of September/October possible.

Be patient on bearish strategies … Fundamentals are super bearish and once the bullish technicals turn bearish we could see a renewed correction in a couple of weeks’ time.

For now, we could see SPX 4550 – 4600 and QQQ 385 … 

Watch 10-year bond yields, the most important chart in the world …. If they trend below 4.09% they provide a tailwind to stocks  … Above 4.20% they turn into a headwind …

Trades yesterday … 

• I adjusted our longer-term bearish spreads in LQD and HYG to bring us closer to the current prices … 
• I am looking for the ALB WTW trade to reach 120 and will close it … It is currently up around 80%.
• The TIP trade is working out well and when QQQ hits the 385 area I will look to add a long TIP/short QQQ option strategy .. TIPs are way too cheap vs. stock dividend yields here …

Look to add a couple of bullish single stock strategies into next week … I like PENN, FTNT, MCD, and will find a couple of other high positive gamma stocks that should squeeze higher as the gamma values pick up in a grinding higher market into OpEx. 

I am traveling this morning but will follow up this afternoon with any new information.

Have a great day!

Griff