The market Doubles Down on NVDA and MSFT

BY ANDREW GIOVINAZZI

June 20, 2024

Yo Pit Crazies,

Mark and Hannah (The lady behind OPU) go live tonight to discuss the Double Down strategy coming to a trading room in OP real soon. Sign up now!

It is another day with a Y so Nvidia Inc (Ticker: NVDA) and Microsoft Corp (Ticker: MSFT) rallies. The market was not happy with 1 Three Trillion Dollar Market Cap company so they went for two. Doubling down this past week to pump up the AI machine.

Heck I thought it would take until Friday to get to 5500 SPX but it appears it is happening today.

I know it sounds crazy, but it could get crazier.

Let’s see why that is.

The Market is shrugging off all bad news

My prognostication came to pass once again post-FOMC. It took a couple of days but the SPDR S&P 500 Trust (Ticker: SPY) once again produced a 20 pt move or 200 points SPX. The Fed not cutting created certainty around the interest rate picture and traders responded for the 12th time this last year producing a big move.

10 day SPY chart

$500 SPY is now 50 points away and it is hard to believe we will see that number this year. At a 12% VIX the market is still looking for more upside since most of the volatility has been in the upward direction in 2024. The last time we went this long without a 2% down day was just into the Volmageddon of 2018. It looks like we can get 351 days again and go for the double.

12 VIX and a steadily increasing market can produce big gains since the shorts have had little chance to cover a position. 2017 was a big up year that produced a much lower volatility. After 7 years, we are due to see some lower volatility into the quiet summer.

A perfect time for Mark and Licia’s 0DTE strategy. Sign up for class tonight.

To Your Trading Success,

-AG