The VIX will spike again, nothing to do about it.
Fundamentally, a perfect storm is brewing.
We had/have many events in the markets:
- Covid Pandemic
- Supply Chain Disrupted
- Ukraine Invasion
- Russia Sanctions
- Inflation Spike
- Energy Crisis
- Global Drought
- Interest Rates Hikes
What's next, a full-blown WAR?
Short the rallies! Every rally is nothing but liquidity grab. You gotta be nuts to go long here, because:
FOMC > more rate hikes 'may be needed' = 'are coming'
Banking crisis. Worse than they let on.
Yield curve inverted. Always preceeds major selloff.
Recession is coming. For all the above. We in 70's economy, stupid!
The Big Dump w/capitulation always comes...
Rally is done folks. Fascinating how perfectly the 21 April bars pattern fits onto the weak retracement rally to right shoulder.
DJI gone off 1K is NOT bullish. SandP down 4%, NQ just tanked > QQQ gave up 15 bucks in a day. Can you say CRASH?!
Yet I still see folks putting out ideas about new rallies to test ATH. Buying this 'dip' will only disappoint, lol. Do...
The VIX could have one last spike left in it before it settles down for this secular bull market run. When it settles down it should settle below the '20s but until then a potential catalyst for another spike could be the June 10th CPI release or if a member of the Fed mentions tapering. If numbers come in hotter than expected again, there could be a frantic...
As markets churn sideways with increasing uncertainty based on a potential correction and non-transitory inflation has caused the vix to break its' downward trend.
Play the vix through VXX or UVXY. VXX is 1x levered, UVXY is 1.5x levered. Gives you volatility protection to varying degrees depending on risk tolerance.
