Trading Room RECAP 12.18.25

Cycle Day 2 | CPI Catalyst | Wild Ryde Clyde 2.0

Cycle Day 2 showed up exactly on brand today — snaps, traps, fulfilled objectives… then immediately started messing with people’s emotions. Textbook.

🌅 CPI: The Market Got an Early Christmas Gift

Before the opening bell even finished its coffee, CPI hit the tape:

  • Headline CPI YoY: 2.7% (beat vs 3.1% forecast)

  • Core CPI YoY: 2.6% (lowest read since March 2021)

Translation for traders, not economists:

  • Inflation pressure eased ✔️

  • Rate cut odds ticked higher ✔️

  • Bulls received permission to press ✔️

Even the mainstream narrative had to tap out and admit progress. When CNN waves the white flag, you know the number mattered.


🐂 Bull Scenario: Plan → Execution → Fulfillment

Straight from the DTS briefing:

  • Trigger: Sustain above 6795 ±

  • Initial targets: 6815–6820

  • Cycle Day 2 projected range: 6840.98

What happened?

✔️ Bid held
✔️ Upside traction developed
✔️ 6840s tagged
✔️ Momentum carried price toward 6860

No drama. No hero trades. Just structure doing structure things.

Then, because markets enjoy irony…

🎯 CD3 Three-Day Rally Target: 6871.18 — TAGGED. EXACT.

Cue the collective “how does this keep happening?”
Answer: levels matter.


🎢 Midday Reality Check: Welcome to the Sandbox

Once targets were fulfilled, the market did what professionals expect and tourists complain about:

  • Sandbox established: 6860 – 6870

  • Volatility cooled

  • Time replaced price

  • Chop replaced dopamine

This wasn’t weakness — it was inventory management.

As noted live:

After objectives are met, the market distributes… it doesn’t volunteer more points.

Wyckoff would approve. Impatient traders would not.


⚙️ Closing Bell: Gamma Doing Gamma Things

Late session action confirmed the real story:

  • MOC Buy Imbalance: ~$1.3B

  • Followed by — right on schedule — sell the close

Nothing mystical here. This was gamma positioning ahead of a massive OpEx, not a sudden shift in conviction.

With quad witching and a ~$6 trillion options expiration looming, the diagnosis was clear:

🧃 Gamma sandwich
🎢 Wild Ryde Clyde 2.0


🧠 Takeaways (Read These Twice)

  • Cycle Day 2 behaved exactly as advertised

  • CPI supplied fuel, but structure drove execution

  • Targets were fulfilled early — consolidation was logical

  • Afternoon chop = positioning, not confusion

📌 Discipline > excitement
📌 Targets matter
📌 After fulfillment, expect time, not fireworks

Tomorrow brings OpEx gravity and Capital Preservation rules.
Same playbook. Same discipline.
Let the market lead — we’ll follow with precision. 🎯

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