BY MARK SEBASTIAN
April 16, 2025
Hey Traders,
The overnight NVDA news is not great.
As I write this, S&P 500 futures are down 40, and Nasdaq 100 futures are down 1.30%.
We did not see another shoe dropping. And while this isn’t a huge shoe to drop, it could be enough to take the wind out of the market’s overall sales.
Because Tuesday was somewhat constructive until after the bell. Yes, the S&P closed down 9, but the IWM stayed green, VIX dropped, and we saw the QQQ stay positive without AAPL getting a pop.
Continue to watch the May-June VIX futures relationship. It’s currently really flattened up from a week ago:
You can clearly see volatility has pulled back – mostly because there are fewer shoes to drop.
Plus, bonds don’t seem to be falling apart; they stabilized. If they stay that way, the market will meander higher.
So do I think this is a huge deal? It’s a deal … but it certainly is not a DeepSeek type of big deal.
I think we want to buy the open on Wednesday.
Make sure to join me and my team live at 10 a.m. ET – I am guiding you through this mess every day.
Let’s Recap Yesterday’s Trade
The XSP calls did not close in the money, but there was a chance to flip them for a profit.
In this market on a straight XSP trade … take profits early.
…Today’s Outlook
With the NVDA news, I need to see how the market opens. If we are rallying at 10 AM, you probably want to own calls.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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