daily options, and Trader feed. Notice the Delta

After 3 weeks of 2 day reversals, daily options, and trader feed finally see it(I was tipped of by the series of 2 green candles and 2 red ones, for weeks. I'm not going to link them, because it's reason to Fade that move, and I don't want to tip them off, or insult them.

When the S&P 500 Index (SPY) has been up for the past one and three days, the next three days average a loss of -.30% (80 occasions up, 83 down). When SPY has been down for the past one and three days, the next three days average a gain of .22% (82 up, 51 down). If traders wait several days for a trend to assert itself and then jump on board, they are likely to start in the hole.

Then the natural conclusion is drawn by Options.

Well, if you are a long gamma trader, it implies the proper strategy is to do most of your delta hedging at the end of each day, and not ride much of anything into the next day. Likewise, a short gamma trader should probably not aggressively hedge at all, as odds say today's move reverses within the next day or three.

This was BTW the trade for the last week, Where we have faded just about every move in the market.(IE... Fade the Fast Money(thank god there is a show))

The Heisenberg uncertainty says that once you observe a particle, you change the momentum.

Over the past year we have moved from 5-7 day gamma(Time period between reversals), To 5-3, and now to 2 day reversals. As we hit capitulation, I expect us to hit 1 day reversals, then probably midday, and that the volatility will beat the crap out of the volatility.... No cure for volatility like volatility.

But.... Say we pretend that the new Unobserved phenomenon, is the reversal in the bank MEME, (And that financials are just about the only thing people are going long, besides for a High Beta "trade"). We should get all that Move fading, to give us some nice upside, over following days, as we notice the unwillingness of the market to find a single theme.. Except oil crashing, and financials going the opposite direction.

The effect from here out, could be for a developing Long term Pennant.