The Hidden Trade That Just Wiped 167 Points Off the S&P

The Hidden Trade That Just Wiped 167 Points Off the S&P

By Prof. Jeffrey Bierman, CMT

Hey trader,

The S&P 500 dropped 167 points in a single morning this week. Most traders pointed at headlines.

The real cause was a structural options trade that almost nobody outside institutional desks even knows exists.

It is called the dispersion trade. It unwound for exactly one day, and the damage was immediate.

Here is why that matters to you. This trade usually takes two to three weeks to fully unwind.

You have only seen day one of a process that could repeat without warning at any point over the coming weeks.

Today, I am going to show you how this trade works, why it creates a selling vacuum underneath the market, and what it means for every long position you are currently holding.

I have watched these mechanics play out from the inside. I track them in real time through the Genesis COG Scanner.

Let me walk you through it.

I've been selectively buying breakouts on names like Zoom at $71 and Best Buy while staying short consumer staples like Coke and McCormick. 83% Winners since July.

I'm sitting on 50% cash with hedges on every position. When this market finally breaks, I want buying power ready.

Click Here to learn more about how Genesis COG works.

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