Markets Correct into Quarterly Expiry

In this week's Macro Insight I discussed...

High inflation prints, Hawkish FED members, tighter monetary policy and higher taxes are all macro headwinds that have made many bank strategists call for a correction in markets between now and year-end. COVID scarring and a longer path to herd immunity are also factors to consider.

Since breaking below 4500 last week, volatility has increased and markets have been more choppy due to less long gamma positioning. The customary sell off for expiry seems to be taking place. There seem to be a bearish consensus forming as bank strategist flag many reasons to be worried. Given that skew is so steep and the VIX is elevated vs realised vol, I see the scenario that will surprise more people to be a sharp rally to 4800-5000 on SPX.

A look at the key macro data points over the next 6 weeks.

FX has been very rangebound and yields are stuck due to the competing forces of higher inflation but weaker labour market and slowing growth. We don’t expect US 10 Y yield to break significantly higher due to relative yields vs other regions attracting foreign buyers.

Oil markets breaking higher on inventory drawdowns, better COVID case data and supply disruption in the Gulf of Mexico. Uranium also on tear as it’s caught the attention of the Reddit retail army after Sprott ETF increased buy program.

Filmed on on Tuesday 14th September 2021.


Macro Insight is an exclusive, members only community, hosted by veteran trader, Imran Lakha. When you join you will receive access to his weekly trading call, benefit from networking with other members, receive weekly marketing reports and be added to a private chat room which offers daily, realtime support and discussion. In the weekly MACRO INSIGHT trading call, veteran trader Imran Lakha, walks you through his macro cross-asset watchlist, discusses the main market moving narratives, shares his charts and the top trades that he is doing for his own portfolio. By joining a community of like-minded traders you can discuss trade ideas, increase your confidence and take advantage of opportunities in the market. This is a unique perspective into how a seasoned professional identifies opportunities, executes trades and manages risk. Every call ends with a live Q&A and an opportunity to share your ideas and receive coaching and guidance for your own trading.

DISCLAIMER OPTIONS INSIGHT CONTENT is presented for educational purposes only. The information presented by OPTIONS INSIGHT should NOT be construed as investment advice. Always consult a licensed investment professional before making important investment decisions. The opinions expressed by OPTIONS INSIGHT are those of its founder Imran Lakha who shall NOT be liable for losses resulting from investment decisions based on information or viewpoints presented by Options Insight.