Semi-Conductor Squeeze and the Mid-Month Gamma Flip

The morning session belonged to the bears as early selling pressure tested the monthly lows, but a violent reversal at the European close shifted the tape. NVDA held the $135 pivot point despite early weakness, acting as the primary engine for a broad-market squeeze. Traders who were short the 0DTE gamma saw their positions incinerated as the QQQ reclaimed its morning opening range and never looked back, closing near the session highs.

Sector rotation was the secondary story, with capital leaking out of defensive utilities and into the beaten-down semiconductor space. TSM’s mid-day volume spike provided the necessary confirmation for momentum scalpers to size up in AMD and AVGO. The bid was relentless through the final hour, suggesting that the 'sell the news' narrative from earlier in the week has been thoroughly exhausted by institutional rebalancing.

Looking toward tomorrow, the focus remains on the $5850 level in the SPX. If the indices can hold today's gains through the overnight session, we are looking at a potential run toward all-time highs. However, keep an eye on the VIX; despite the rally, volatility hasn't completely compressed, indicating that the hedge funds are still paying for downside protection. Trade the price action, not the bias.

Today's edge: Today's edge: When the tape reverses at the European close, use SpeedTrader’s direct-access routing to hit the bid before the retail lag catches up.