Yo Pit Crazies,

If you missed my MARKET SURVIVAL SUMMIT, you can grab the link here.

It includes not one, but two, tricks to trade this market.

And, oh, what a market it is.

Traders have priced the recession in. Just look at Energy and Banks.

Energy SPDR Energy Select (Ticker: XLE) – the green line above – has fallen off a cliff going back to pre-Ukraine conflict.

The SPDR Financials Select (Ticker: XLF), meanwhile, is off 25% from the top just right after the Fed started to reduce QE.

Now the Federal Reserve has switched to Quantitative Tightening – and it sure does feel like the market has been ahead of the Fed.

All this mayhem might force me to go Code Green for the SPY Master on Tuesday.

Let’s take a look.

Code Green for SPYMaster: An Off-Day Trade

The VIX curve is very flat going into next week. Essentially that is the market telling us it is confused as to the direction of the VIX.

It could be up or it could be down.

Usually, I buy strangles in the VIX or the Pro Shares Ultra Vix short term futures ETF (Ticker: UVXY) when the VIX curve shows up flat.

VIX futures curve on Friday, June 17

If VIX dives on Tuesday would set up a short VIX/Short SPY trade a bit earlier than expected – my Spy Master Trades are almost always on Wednesdays.

>> To make absolutely certain you’re ready for this week’s SPY Master trade, you must act now. <<

Short-term 9-day VIX is just over 30. I will be watching that closely to see if the recession selloff has finally finished.

Banks and oil stocks are already saying recession. Just a drop in oil prices would stop that but quick.

To Your Trading Success,

AG