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"Spot Up, Vol Up": Market Squeeze Slingshot Triggered As Dealers Tumble Down Gamma Trapdoor

Tyler Durden's Photo
by Tyler Durden
Authored...

Yesterday we explained why the current market positioning is one where the modest trickle higher in risk assets could suddenly accelerate and "slingshot" stocks higher because dealers would flip from long $4bn gamma (vol suppressant) to short -$6bn (vol accelerant)...