Markets Geared Up For Virtual Jackson Hole Symposium - Morning Market Squeeze

Key Tactical Takeaways: > Our EA Risk Barometer still suggests that risk appetite is strong. This is confirmed by our sector work. While this does not cushion us from the tactical pullback that upcoming gamma roll-off, late-stage wave signals and extreme sentiment are warning might be near, it does...

> After GLD breached critical NT support at 182.0 on Monday, risk of an eventual measured move to ... stays valid against 184.09.

> HYG now has leverage to ..., as LQD now faces ...

Some Quick Thoughts:

As historic stimulus programs (the latest coming in the form of Germany's late-Tuesday extension of its short-time work program for workers who lose hours due to the pandemic) and false hopes of a virus treatment continue to bolster the herd, the cap-weighted S&P 500 has now been fluffed up to the top of its near-term price channel as volatility of the VIX (VVIX) has collapsed yet again (VVIX closed at its lowest level since 02/21 on Tuesday).

While this points to a market that...

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