Market Commentary for Friday, August 22, 2025, by Peter Cook
It is a pseudo-FOMC day here and we are seeing heavy, heavy hedging right now.
The Put to Call Gamma ratios are in very bullish territory. People have TONS of puts under 635 on #SPY. That means two things - typically, it means 635 will be heavy support. But under 635 it will become gasoline on a fire if we go lower.
We saw the Journal release a trial balloon article last night from Nick Timiros and it was timed right for the Asia open to see what kind of market reaction they'd get. It was not good, Asia opened down a lot and continued to sell until Europe opened. I'm a little wary about what is going to happen here when Powell talks. Remember, normally it's a huge sell when he talks.
Vix CoT report is showing a very, very bearish setup intermediate term. We are seeing people short Vix to a very, very high level here. This has not happened since we crash in April and again in December when Trump range the NYSE Bell at the market top.
I'm not trading this today, just waiting to see what will happen. Good luck if you are trying to trade this.
Levels:
All the best;
Peter Cook
#NQ_F Chatroom Chief Moderator
Hamzei Analytics, LLC
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