Yo Pit Crazies,

Check out all the Griff you can as he scales the Caaawll Waaawll with SPOT GAMMA.

For those into the more esoteric VIX information, this is the 1st time in a couple of weeks where VIX cash closed below the VIX futures. That is usually very bearish VIX and bullish SPX. The big jump in VIX on Friday did not sustain as the IDF went into Gaza. We are now back to the lows of the last two weeks in VIX.

VIX curve chart from VIXCentral.com and it is free and updates in delayed data

Traders let the air out of the balloon big time as what was expected happened and now there is one less thing to worry about.  

But there is another one…

Jpow and the Fed come to town

Yet another FOMC meeting and interest rate decision. In my view, the bond market has taken over rates as Janet Yellen quietly tries to borrow an insane amount of money for the Green New Deal.  Why government spending is 40% higher than in 2019 is beyond me but there you have it.

Below is a chart of VIX. For the market to move past most of the recent headwinds, VIX needs to get to 16.5%, preferably by Friday. Post-FOMC has been a good place for VIX drops before.

In yesterday’s blog, I wrote about VIX almost ready for some vol product puts. Today should be the day to buy some. We will address that in the Trading Desk.

Also, I don’t see a parabolic rally, but the market is planning on one. In the Pit Stop I covered the bid for upside vol. Upside call butterflies could play equally well in the big indexes.

Don’t forget Griff’s big gamma fest. It will help you learn why markets move the way they do.

To Your Trading Success,

AG