BY ANDREW GIOVINAZZI
June 25, 2024
Yo Pit Crazies,
Check out the latest 0DTE video from Mark and Hannah. Lower volatility should produce better results and realized vol is the lowest in two years right now.
I give Mark lots of credit on his long Diamonds, Dow Jones Industrial Average ETF (Ticker; DIA) short S&P 500 mini index (Ticker: XSP) call from Friday. That trade was up 30% in a day. The driver of the idea was of course NVDA. NVDA has pushed the SPX up huge this year and if NVDA tanks, like it did the last 3 days, SPX should follow. The DIA does not hold NVDA so oddly it is a more broad based index being price weighted instead of market cap weighted.
So instant hedge fund, long one basket and short another basket.
5 day SPX
VIX has not sold off yet. It is also making higher lows so traders are not ready to believe the rotation will be a non-event. There is a PCE number and the Presidential Debate Thursday so both those things are volatility catalysts. If VIX does not abate by Friday, something else is up.
5 day VIX chart showing higher lows
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To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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