You can see where we closed, and where we currently are.

Today will be a gap down open, but what’s after that? Everything is down …

But I would point out – for how big we are down, you know what’s not exploding?

VIX futures, while they’re up.

Remember what I told you about how the market was pricing Thursday like it was a binary event?

Well, we got the event – but much of this move was ALREADY Priced into options. Thus, VIX is up, but it isn’t absolutely exploding. With where VIX futures are currently trading, I’d be looking for the VIX to still be below 30 in the morning.

Pretty nuts right?  Not really … this is how options work…

Stocks react, options anticipate. They got this one somewhat right – although currently the move is about 2X what the market was pricing in.

Here’s what I am watching in SPX. Does it gap and keep dropping – or after about 30 minutes of craziness in the morning, does it start to creep higher?

My guess is probably the latter.

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Let’s Recap Yesterday’s Trade

I was off by a day on the Super Overnight. Small loss, but look out – we might have some fun today.

…Today’s Outlook

We are going to open down big, but then I suspect we might rally. If I sense that working with Licia and her pitchforks, we might have an XSP trade for you.

Call Ted if you aren’t currently a member – 888 872 3301.