FOMC makes the shorts sing, “This is what it sounds like, when doves cry.”

BY ANDREW GIOVINAZZI

December 14, 2023

Yo Pit Crazies,

If you missed my webinar on Tuesday night about Weekly Profit Cycles, you still have a chance to get in while the market is on course to rip to all time highs. Wednesday we had a banner day.

I closed both of my SPDR S&P 500 Trust (Ticker: SPY) call positions for 100%+ gains in WPC and that puts me in the driver seat for whatever happens in the market for the next…month. That’s right, a month of a free look at what SPY and VIX are going to do. Crazy I know.

I can’t wait. What is better is when my students make money from the ideas I post and send out via the OP App or in the Pro Chat Room. If you want to trade better, you need better trade ideas. Better still, learn to create your own trade ideas. That is what Weekly Profit Cycles is all about,

Normally when VIX is up and SPY is up it is bad. Gives me pause for concern.

Not today.

The Fed creates upside volatility

For anyone not versed in how options work, skew is meant to adjust option prices for the tail risk that comes from downside moves happening too fast. That means crank up the puts in SPY. Wednesday was not a meltdown but a melt up. My favorite indicator is the bounciness of the 9 day VIX. Right now traders bid it up because the move was closer to a 20 VIX today.

All upside. I might have to add some more SPY calls to my Weekly Profits Cycle trade for the latest I put on Wednesday. Don’t fight the momentum and right now that is up. VIX will drop once the market cools off a bit.