Yo Pit Crazies,

For the first time in a week, stocks dropped and the VIX rallied some.

The one-two punch of the China protests and jaunty Jerome Powell got folks a little nervous.

The sudden plunge in the oil price probably did not help either.

I could add, too, slow store sales and the price of Thanksgiving dinner this year … but I would be piling on the bad news.

Also, remember Jackson Hole …

Forever to be associated with the big selloff that drove the S&P down to 3,500 earlier this year.  J-Pow did not like the fact the market thought he would pivot. He did not and down stocks went.  

He is speaking again Wednesday in some prepared minutes. 

Let’s see what the market thinks

Liquidity Providers Pushed Vols Up

Of course it is not just the LPs.

But they can actively move implied volatility higher if retail paper gets an itch to buy options.

Implied vols reinflated after the 2.5 day weekend. They went up faster than most people realized.

Note above there are still some weekend adjusted terms in the teens for IV.

Dec. 2 IV and the J-Pow speech day are running neck-and-neck.

SPX had a 24% volatility move day on Monday and Powell said nothing. Low liquidity, bad news and jitters did the rest.

If you want a trade set up for it, we covered that in the Pro session Monday night.

That is a good place to learn new trading techniques.

I expect this talk by JPow to be another market mover.

The Rundown

Win the Week

Bill started Winning the Week with a Gold Trust (Ticker: GLD) call spread and 26% gain.

Nitro Trader

Mark crushed a Manchester United Inc (Ticker: MANU) call calendar for a 236% return. Goooal!

To Your Trading Success,

AG