As the market continues to make new all-time highs, traders and investors are gearing up for a busy week ahead. The Mag7 EPS, FOMC, and US/China meeting are on the horizon, and broad risk sentiment is firmly in the green. The GSCBSMHX, GSX1QNT1, GSXUROBO, GSX1MEGA, and GSXULMO indices have all seen significant gains, with the Mag7 index poised to set the tone for risk heading into year-end.

Despite some deceleration in growth rates, tactical set-ups remain relatively attractive, with a 8 out of 10 overall positioning score for high-frequency traders and long/short investors. Additionally, dealers have flipped from a long $4 billion gamma position to a short $6 billion position, indicating a shift towards volatility acceleration.

Our desk is currently experiencing low activity levels, with LOs evenly skewed between buying and selling, and HFs 5% better to buy in the TMT and HC sectors. The calm before the storm suggests that market makers and dealers will need to start chasing the market higher to hedge their books, potentially leading to increased volatility and momentum in the near future.

As we head into the busy week ahead, investors and traders alike will be keeping a close eye on these developments. Stay tuned for more updates and insights from our desk!