BY ANDREW GIOVINAZZI
May 28th, 2025
Yo Pit Crazies,
If you’re reading this at the end of the day and traded today, it might’ve felt like pulling teeth. Traders spent the day waiting on fresh clues from the Fed—and what did they get? Absolutely nothing. Nada, zip, zilch. A big, fat bagel. While the Fed is focused on the potential impact of tariffs, the real concern might be what Congress does—or doesn’t do.
In the meantime, if you’re looking for a reliable and effective day trading service, this could be just what you need.
The Senate has taken up the so-called “Big Beautiful Boondoggle”—and promptly declared it dead on arrival due to its expensive spending. Meanwhile, Consumer Confidence jumped on Tuesday, but all the market chatter is still focused on the so-called TACO trade deal—short for “Trump Always Chickens Out.” That nickname is sure to ruffle feathers, and could spark yet another round of Tariff Tantrums.
It all boils down to responsible government spending—and we’re still not seeing it. For now, traders will have to stay patient and wait for the next key events: the release of PCE data and earnings from Nvidia Corp (Ticker: NVDA), both of which are high on the market’s radar.
Let’s see how the market is pricing that.
There has been a shortage of action in the bid-up this week
Notice how Sigma volatilities are significantly higher in the short term compared to the June 6 cycle and beyond. Sigma IV reflects the average implied volatility around the money for a given term. Right now, traders are pricing in substantial near-term movement, with at-the-money calls and puts for Friday going for nearly $8. In short, the market is bracing for action.
The one thing that has been lacking has been inflation over the last few data drops. AI is still the growth engine in the economy. Both things are up on tap this week. I think the PCE is subdued and NVDA is selling a bunch of chips so 600 SPY will be the Friday close.
One thing that’s been noticeably absent in recent data releases is inflation. Meanwhile, AI remains the primary growth engine driving the economy. Both themes take center stage this week, with PCE data and NVDA earnings on deck. My take? PCE will likely come in subdued, and NVDA is probably still moving a mountain of chips. If that’s the case, don’t be surprised to see SPY closing in on 600 by Friday.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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