It is Deja Vu all over again!!!!!!!!!!!!!!

BY ANDREW GIOVINAZZI

November 20, 2024

Yo Pit Crazies,

Call me crazy but I could have sworn the VIX up, SPX up endless grind before the election was over. The lovely volatility correlations were back in full swing. I got to close a bunch of great trades in my Two Way trades.

The goofy VIX was a thing of the past.

Dead…buried….and as Frankie “Five Angels” said in The Godfather, “Morrrt”

Well it ain’t.

For readers of this newsletter know, that is a sign that something is up and the market and traders are very unsure what might happen or something big is going to happen. Well Nov 5th was the election and it happened. Things were getting back to normal. Frank Gregory was happy because Washington could get back to work and start spending money again on something other than the election.

In Godfather III, Michael Corleone said famously, “Just when I thought I was out and they pulled me back in.”

Joe Biden is saying, “Hold my Beer, it ain’t over yet Washington DC, I got two months left.”

We go live today and there is a kettle of Biden Brew.

So what are we going to talk about?

You cannot buy every great stock, but you can make every great trade

Once again the smooth ride that traders wanted for the Inauguration hit a bump in the road. VIX was 13.65 on Thursday and abruptly halted. The new Biden Adm efforts sent traders reeling and it really was the surprise of the policy that took people off guard.

Two years ago better equipment would have mattered, maybe. Now it will be hard to dig the Russians out. Either way, stocks want to rally but VIX and volatility want to rally too. This will create new opportunities in oil stock, gold, defense and gosh know what else.

We will have trades today. If VIX relaxes today, the market will relax from the new Biden Doctrine. If it doesn’t expect some market fireworks.

Check in here at 1pm to see how we play it.

To Your Trading Success,