Daily Market Action is coming for you, check this out

BY ANDREW GIOVINAZZI

February 23, 2025

Yo Pit Crazies,

My OP Newsletter is morphing into Market Action. This is the mouthpiece for me to dissect market action and set up for a trade the next day in one of my services of which there are many.

For Friday morning I thought we would see new highs in SPX and then the economic news was terrible. Added to that D.O.G.E. was hyping stimmy check and Walmart Corp (Ticker: WMT) was worried about the consumer and just like that we were not at all time highs any more. Nobody can crash an economy like the Federal Government.

For now, most of the headline news is just policy talking out loud but the slowdown is real. We saw 5900 SPX on slowdown news and inflation which is just what a ridiculous Stimmy check will produce.

I think there will be a lack of news helping the market at the beginning of the week, sans an outright repudiation of D.O.G.E. stimmy checks. Nvidia Corp (Ticker: NVDA) might help midweek but really at this point no Mega Cap Tech, save Meta Inc (Ticker: META), really launched after earnings. It could happen.

Mystery Indicator

Take a look here at my most reliable indicator and what it means for Monday’s trading.

This is 9 day VIX of course

Look for my ebook on this soon. VIX9Day is just the VIX calculation on short term options, around 9 days out to be exact. This is a very useful indicator because it provides direct sentiment to me. If VIX9d is jumping over VIX, traders are nervous and are buying short term, high theta burn options. That means they don’t mind buying an option decaying at high rates because they think the payoff will be fast.

According to the chart above, VIX9D never traded above 19. With the weekend coming there was not a huge rush to bid up options into Friday’s close although they were much more expensive than in the morning. That is not panic buying yet.

Following the VIX9D will determine if I close some S&P 500 Trust (Ticker: SPY) put spreads early or not in Weekly Profit Cycles. If VIX9D really launches over VIX, expect lower SPY numbers fast this coming week.

To Your Trading Success,