VIDEO REMINDER In Today’s Masters in Trading: Live What’s Moving the Markets This Week? -
Recession Fears Take Center Stage: Stocks are selling off this week as markets weigh recession concerns and tariff uncertainties. The VIX has now reached its highest level this year. -
New CPI Data Incoming: February's inflation numbers will be released on Wednesday, bringing key economic data into focus as trade-war concerns intensify. -
The Fed Put Vs. The Trump Put: The "Fed put" refers to the expectation that the central bank will cut interest rates if the economy weakens. The "Trump put" suggests the administration will ease policies that could destabilize markets. Both concepts are gaining attention this week as markets seek direction amid heightened volatility. With market-wide selloffs and economic uncertainty reigning over the global economy, volatility clearly isn’t going anywhere fast. It’s easy to think the sky is falling whenever we catch wind of the latest doom-and-gloom news cycle… That’s why it’s important for us to understand how all this market chaos compares to similar historical patterns. JR’s Chart of the Day  The chart above compares the movement of the VIX, the VIN, and many other volatility indicators over the last nine years. And I believe it makes one point very clearly… Right now is not the time to go long volatility. We simply don’t buy volatility when it’s bid through the roof. I wouldn’t want anyone to get too long on their exposure right now. The fact is, we have plenty of opportunities to put our capital to work in the short term – all without tying it up in long trades that could easily go south. Over in our promotional portfolio we’ve already lined up a few new short-volatility trades that should help us keep some capital in the game against the immense market pressure we’re seeing right now. Looking ahead, we’ll want to keep our exposure short as a general rule. Join us today in Masters in Trading Live at 11 a.m. ET to get my insights on short-volatility trading and my longer view on all the market chaos from here. Got questions about the three new plays? You can join today’s livestream and ask me in real time. What You Missed in Discord We should always have some firm rules in place to ensure we can live to trade another day. It’s the only way to thrive when the markets are skidding. I tell viewers all the time about the importance of sticking to a consistent approach. That’s why I love this comment below from my loyal viewer, Eddie O. He recently shared how he leverages the kinds of spread trades I recommend to keep a beat on long-term volatility: When volatility is high, I enter spreads. I don't want to pay up for long options. And when you sell the option, make back the diff. Just a heads up… There's no sales when vol. is high, and Bid & Ask get wider! Love making those pennies! Eddie also explained he won’t get long until the VVIX – also called the VIX of the VIX – drops below 100. And that’s all part of the approach I teach my viewers – maintain strong levels, and always let the markets come to you. I love when viewers give helpful advice like this. And I want everyone to share that same discipline as we look for ways to thrive amid all the market chaos. Got a Question? Be sure to join me live on YouTube and ask me anything. It’s a great way to connect directly with our trading community and make sure you’re getting the insights you need to help build a deeper understanding of the markets. Remember, the creative trader wins, |
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