Markets are schizophrenic this morning.
Nasdaq futures are up 0.7% led by semiconductor stocks — Micron up 5%, Sandisk up 4%, the SMH ripping almost 3%. Meanwhile, Dow futures are down 66 points.
The reason?
Trump just launched fresh strikes on Iran after they attacked commercial shipping in the Strait of Hormuz. Then he said he called them to make a deal. Then he said the ceasefire is "over." Oil jumped, then went flat.
Nobody knows what's happening, so traders are rotating into chips and hoping for the best.
Here's the issue Don's been tracking: We closed Wednesday basically unchanged on the week despite massive intraday moves. That means we're carrying serious gamma into Friday. The market thinks there's only $64 of risk left. Don thinks we move 100+ handles before Friday's close.
The advanced decline line has been terrible of late — just a handful of names holding everything up while sector rotation spins the wheel.
Now add geopolitical chaos on top.
Don's going live at 9:20 AM ET to break down what happens if oil stays elevated, what the gamma unwind looks like into Friday, and why this semiconductor bounce might be a trap
— The TheoTrade Team