Yo Pit Crazies,

This Saturday Mark and I will embark on a journey to unlock pricing secrets. Sign up for the class and pick up our free indicator to help identify stocks ready to make a move.

It turns out the Israeli missile landing in hospital was not Israeli and did not land in a hospital.

Just when things could not get any weirder, Pro-Palestinian protesters occupied part of the Capitol Building when Congress was in session. Needless to say it was not received well and once again somehow all these protestors got in without as much as a by your leave.

That brings the Princess Bride to mind when protesting hopes and ambitions far exceed the ability to make any changes.

Once again the algos caught the news and helped SPX drop on an already weak day looking for more news from the Middle East. That news was the  rocket attacks on a certain hospital were not exactly accurate. I would think that would be positive as most of OPEC pushed back on Iranian Embargo requests. Who knows what is true to be honest but traders have to price this stuff. As I recall from Jan 6th, 2021, VIX took a hard shock UP with that news and took a day or two to recover.

SPX 20 Day Chart with Oct, Nov and Dec sigmas

I see the end of day IV sigma levels to be a bit surprising.

Time to see what the market is pricing.

The persistence of this vol pop is what I find troubling.

The Nov and Dec Sigma levels, Sigma is just average IV for the term, is just about where it was when SPX was 100 points lower. SPX is not more volatile now that it was two weeks ago on a close to close basis. No real trend is taking hold.

Note the trend line I drew. Yes I drew a trend line. If those numbers can hold something else is going on. If the Sigmas don’t hold up, I think, crazy as it sounds, SPX starts its run back to 4400.  Yields, Middle East, Deficits and Capitol Takeovers be damned.

Price and Volatility is a great trading tool if you know how to use it. And on Saturday we show you how.

To Your Trading Success,

AG