Posts  / SPY  / #POST-246342
REDDIT

Insights from the Aion Analytics platform (I'm paying $500 bucks a month and it is worth it for those who have the means, but for those who don't, here are some takeaways).

At least on SPX, which Aion most accurately forecasts, we are looking at a relatively choppy environment through most of the end of the month:

https://preview.redd.it/4uoscgn3fxjh1.png?width=1400&format=png&auto=webp&s=7f1212ceb9532d2532970347c332653d6ef57801

Mostly, the data on the platform forecasts strength into September, however. 

On the SPY heat map, we see that with most of the dealer positioning within 1-2% of current spot price on SPY. 

https://preview.redd.it/lb942154fxjh1.png?width=976&format=png&auto=webp&s=2e24b0ad5ef3c33cce43c812a68c51941328988a

Gamma is still mostly positive. 

https://preview.redd.it/flj33mk4fxjh1.png?width=1400&format=png&auto=webp&s=270b716856be3f5f8f26909ddfb2ce5ea8bc0caa

VIX is suppressed, but flows still point lower on UVXY with a put surge as per the TMAD data. 

https://preview.redd.it/5q6ytsx4fxjh1.png?width=1400&format=png&auto=webp&s=8e892399f71819e936058d8ef5a1ddfba7646187

For the next couple of weeks, liquidity is flat to slightly lower, so less supportive of expansionary upside, but ti does pick up into the end of the month into early September. 

https://preview.redd.it/fwldp9j0fxjh1.png?width=584&format=png&auto=webp&s=7afbf3004984f8ce5389f3c798004d1735251017

What you will notice is that the liquidity is forecasted to drop off dramatically into October, and this is the main predictive bet of the Aion analytics platform. 

Choppy into August, slightly up through September, and then down, potentially heavily down, in October. 

The Aion Analytics platform did well on timing on the March bottom, and the negative chop/price action into June/July, despite the majority of seasonality pointing higher. The Aion Analytics platform also called the bounce and strength in August, so I am inclined to heed the warning into October this time. 

We don't want to be heavily long through October. It is better to use this period through September to look for opportunities to exit and trim positions for October, but the Aion analytics platform forecasts a strong November, so that would be the time to put exposure back on.

For more of my daily analysis, sharing insights from a number of data platforms I subscribe to, feel free to follow me on r/TradingEdge