Yo, Pit Crazies,

This week, the market is still recovering from the 200 point range in the S&P 500.

And it’s going to be a wild ride into the European Central Bank rate announcement and Consumer Price Index next week.

Here’s why I think so.

The Front End of the VIX Futures Curve Is Unstable

What do I mean by that?

The chart below is from the free website VIXCentral. For delayed quotes, it serves a purpose and you can see that the green VIX cash line is over the future.

That is what I call a “just backward” front end, with VIX cash over future.

That usually means SPX is going to be very unstable as short term IV jumps into the uncertain future of this week.

I will go into how to trade it live at 7 p.m. ET this Thursday, but buckle up for a wild week.

To Your Trading Success,

AG