Yo Pit Crazies,
Day 2 of the Ice Report. A big chunk of ice broke free and is headed toward my neighbor, the oyster fisherman. I hope my big iceberg does not mess up his situation over their grabbing oyster gold out of his floating beds. It happens every year but this ice pack is pretty big. Once things get going it is hard to stop them.
That brings me to the Iran Situation. I call it a situation since we have not declared war and neither has Israel. They must be darn mad at Iran because they keep on bombing the crap out of it. I even read, unconfirmed, that the new Ayatollah has been wounded. Like I said earlier this week, that is a job no one is going to want.
SPY hit a midday downtick on reports of Iran mining the Persian Gulf and Strait of Hormuz. With what, rowboats? Anyway, the S&P 500 will swing on anything.
5 Day SPY Chart
VIX closed above 24 again because the situation is fluid. Kind of like my icebergs. We are pretty sure how it will end up, but in the meantime it’s going to be tricky.
VIX 30 Day Chart
A VIX Play
I am going to start adding more VIX puts. It seems the algos read mainstream media (MSM) news and that has been wrong up until now. Keep an eye on metals, think they get back to highs relatively fast. It seems the Trump Administration has a plan but the MSM is not in on it. That will give us fadable VIX opportunities.
To Your Trading Success,
Andrew