BY ANDREW GIOVINAZZI
March 1, 2024
Yo Pit Crazies,
I joked on Twitter this week (I will never call it X) that VIX will trade the 12 handle. People thought I was crazy. We had data, world strife, and the normal assortment of trouble that plague mankind. But that doesn’t matter when there is a story.
The story is still AI. AI powered the Invesco QQQ Trust (Ticker: QQQ) to an all time high with Apple Inc (Ticker: AAPL) nowhere near all time highs. Other stocks are starting to do the lifting, like Advanced Micro Devices (Ticker: AMD).
That is a recipe for the market to lose some of its pace.
That leads to something else.
Stocks Are Not Going Anywhere
This does not mean that I am bearish. It’s just that the parabolic up moves in SPX may slow down some if there is a changing of the guard on market leadership. That leads to lower market volatility which leads to lower implied volatility.
VIX is the Cboe 30 day volatility index. It’s sitting at a level that is trying to break a trend of higher lows. I don’t put much stock in charts for VIX levels but this is a sentiment indicator.
VIX 3 month chart
Lower VIX breaking through could mean new, slower highs in SPX.
I like the cheap 13 puts here.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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