[OP Ed. Note: This Editorial Was Drafted Without AI]
Yo Pit Crazies,
The SPDR S&P 500 Trust ETF (SPY) managed to have a 2.5% up day after the small rally on Friday.
Even the news of an affair with Nvidia CEO Jensen Huang and a comely Chinese, alleged, spy could not keep stocks down. I saw a stat that the Invesco QQQ Trust (QQQ) was only trading at a 17 P/E on Friday.
That surprised me.
The market has already discounted the huge revenues a lot of chip makers are making on the AI buildout. When the news of all the AI data centers losing votes it reminded me that history can repeat itself.
Not long ago I remember the USA went on a Green Binge and cancelled the Keystone Pipeline and all kinds of other anti fossil fuel measures. Then the Russians invaded Ukraine, oil spiked and we ended up buying oil from Venezuela. I would hate to be left behind in the AI race.
Oil prices are down on Monday. When I went live with Garrett on the Election last week, I thought oil prices would be lower by December. The ExxonMobil (XOM) puts I recommended are up 50%
My point on all of this is voting down economic growth prospects is poor policy. You can have social programs, but who pays for them? The market voted with its feet on Thursday only to be reminded it is hard to do any of the worst things while the Congress and the Executive branch are divided. It was hard enough to do anything when the Republicans had Congress and the Executive so a divided government should do minimal damage. The Republicans accomplished 0 and got trounced.
The Brave New World has a flat VIX curve
From Friday’s VIX curve to today, VIX flattened out quite a bit and volatility dropped overall. Earnings are still great, Congress and Executive are dividend and hopeful CEO Jensen Huang did not do anything wrong.
VIX curve 11.09.2026
I bought some Nvidia (NVDA) shares today and some call calendars. I think it will be ok.
The world is still building and that is a good thing.
It is the right time for this strategy, especially in volatile markets.
Mark put out his first trade earlier today, but it’s still in the buy range.
I hope this was helpful,
AG