Masterclass: Using Blind Spots for Trading

Finance-focused summary (Blind Spots for trading)

What “Blind Spots” are / why they matter

• The market doesn’t move in isolation. For example, when trading NQ (Nasdaq) or ES, price action can be influenced by:
  • “Big Seven” / Mag Seven stocks (examples: Apple, Nvidia, Tesla, Micron)
  • Other equity indices/benchmarks: SPX, QQQ, SPY
  • China/world events
  • Commodities (examples: oil/crude, gold)
  • Volatility (example: VIX)
  • Cryptocurrency (example: Bitcoin) influencing ES
  • Interest rates / macro conditions
• In the Mental Quants app, “blind spots” are an indicator that plots price reaction zones that are not classic hand-drawn support/resistance.
• They are derived from options-market data, specifically:
  • Option positioning
  • Gamma exposure
  • Volatility structure of correlated assets
• Output:
  • Blind zones / Blind Spots numbered 1–10 on a chart.
  • The levels come from clusters of overlapping gamma/reaction zones.
  • BL1 typically has the strongest cluster (most overlapping levels), but BL10 can still matter depending on gamma from correlated assets.

Methodology / step-by-step framework taught (as used in examples)

1. Use daily EOD data
   • Blind spots and gamma levels are based on daily results.
2. Add Blind Spots to a single chart
   • The goal is to avoid manually checking many correlated assets.
3. Prioritize blind spots that maintain gamma levels
   • If blind zones reinforce underlying gamma levels (especially near “fundamentals” / known levels), expect stronger reactions.
4. Use an asset correlation matrix
   • Determine which correlated assets matter most to the traded instrument this week.
   • Example concept for ES: map key option levels from SPY, QQQ, gold, oil, Bitcoin, Apple, Mag Seven, VIX, etc., then look for overlap clusters.
5. Scale timeframe
   • Start with 4-hour to identify the range / big zone concentration of blind spots.
   • Then zoom into 30 minutes to build entries / roadmap.
6. Build a trading roadmap (“plan A/B/C”)
   • Blind spots help identify inflection points, entry areas, and targets / risk triggers.
   • They do not explicitly indicate direction (up vs. down); they highlight likely reaction / inflection zones.
7. Combine with other Mental Quants tools
   • Mentioned tools: Gamma levels, Jax heatmap, Q-score.
8. Optional for swing trading
   • Combine blind spots with swing levels and higher-timeframe zones/ranges.

Practical use cases / explicit recommendations

• Deal/transaction management
  • Use blind zones as validation tools for where a move might pause/stop.
• Entry points
  • Blind spots are explicitly emphasized as “very important” for market entries.
• Risk management
  • Risk controls (e.g., “risk trigger”) are tied to:
    • where blind zones cluster, and
    • where they align with gamma/swing levels.
• Interpreting clusters
  • A cluster of blind spots below price → often indicates strong support/resistance.
  • A cluster of blind spots above price → often indicates strong support/resistance.
  • Price reacting/bouncing in those zones is described as the expected/observed behavior.

Key instruments / tickers/assets mentioned

• Indices / futures
  • NQ, ES
  • SPX
• ETFs
  • QQQ, SPY
• Options / volatility
  • VIX
  • Mentions of EODTE call resistance (end-of-day; appears related to an app context such as 0D/1DTE)
• Commodities
  • CL (crude oil)
  • GOLD
• Crypto
  • Bitcoin
• Stocks / sectors
  • Apple (AAPL), Nvidia (NVDA), Tesla (TSLA)
  • Micron (ticker not explicitly stated)
  • “Mag Seven” / “Big Seven” referenced broadly

Named levels / numbers explicitly discussed

• Blind spots framework
  • 10 levels: BL1 through BL10
  • BL1 often has the strongest gamma cluster; others depend on gamma contribution.
• Concentration examples
  • NQ: “50% of all blind spots are here” (no exact price provided).
  • ES: “70% of all blind spots” in an identified range.
  • Apple/Tesla: “80%” and “90%” concentrated in a zone.
• Tesla (explicit price band)
  • Nervous zone: 370 to 350
  • Later narrowed using exposure: 360 to 350
• NQ (round number target)
  • Potential target mentioned: 7700
• Energy / oil
  • CL used as a worked example, including daily closing levels and “first hour” blind spots (no numeric prices provided).

Data timing / availability (explicit)

• Blind spots and gamma-based levels are calculated daily at the end of the day.
• Availability time: 11:00 PM Eastern Time, Monday–Friday.

Disclosures / disclaimers

• No explicit “not financial advice” disclaimer appears in the provided subtitles.

Presenters / sources mentioned

• Fabio — speaker; leads theory/examples
• Patrick — presents examples applying blind spots on charts
• Scott Carney — referenced as also looking at NQ around the discussed short-position area/level