We just flipped back into positive gamma territory.
What that means: dealers are now long gamma, so they hedge by *dampening* moves — selling into rallies, buying dips. The market gets stickier, volatility compresses, and big intraday swings become less likely.
This is the regime where grinding rallies happen. Not explosive rips, but steady, low-vol climbs that frustrate bears and bore day traders.
If you've been waiting for a breakout or breakdown, you might be waiting a while. Positive gamma = range-bound until something breaks the structure.
What that means: dealers are now long gamma, so they hedge by *dampening* moves — selling into rallies, buying dips. The market gets stickier, volatility compresses, and big intraday swings become less likely.
This is the regime where grinding rallies happen. Not explosive rips, but steady, low-vol climbs that frustrate bears and bore day traders.
If you've been waiting for a breakout or breakdown, you might be waiting a while. Positive gamma = range-bound until something breaks the structure.