Yo Pit Crazies,

If Friday was a ride in the wild west of Jackson Hole, Monday was a cruise on ship to nowhere.

Much of the volatility from Friday did not carry over to Monday.  The Fed put the short-term stake in the heart of the Pivot Posse, and I don’t see them riding out anytime soon.

We are back to discounting how bad the economy will be when this rash of spending by Uncle Sam finally slows down.

The reality is the stocks should go sideways-to-down until the next CPI number, which is the week of Sept. 12

Let’s see how to trade it.

This Is a Great Opportunity for Short SPY, Short VIX

Right now the downside for the SPDR S&P 500 Trust ETF (Ticker: SPY) is in play because the Pivot narrative is dead.

What we will get is a lazy drop in stocks are are symptoms of most bear markets.

The crazy bear market rallies have really held the VIX up and realized vol up.  In the short term, for the next month or so, both of those things should fade somewhat.

 Long SPY puts and Long VIX puts!

The SPYMaster is the perfect trade setup for that. 

The Rundown

Nitro Trader

Mark closed an Apple Inc (Ticker: AAPL) put butterfly for a 53% gain Monday. It is possible we reload that fly for the next leg down.

SPYMaster

I closed a SPY put for a 60% gain on Friday and looking for VIX to drop this week into next for a big win overall.

To Your Trading Success,