As Index Gamma Flips Negative, Goldman Flows Guru Says “Sell The CPI Green… Again”

Earlier in the week, we warned “the clock is ticking on negative market gamma”, noting that the longer the market remains trapped in negative market gamma territory, the more dangerous it gets because there is more opportunity for fragility (from declining liquidity and shock absorbing gamma) to meet a burst of systematic market risk or other kind of momentum event.

Today, we see a potential ‘event’ in the rebound in CPI (albeit as expected) and – as it does – the US equity market has decided that is a buy, with stocks up over 1% out of the gate (after some initial chop)…