Yo Pit Crazies,
There is always the day after.
As in the day after the FOMC speaks and pundits digest the nuggets of truth (and otherwise) coming out of the Fed.
Bill Griffo and I will discuss and decipher this in our Power Gains session today at 11 a.m. (If you want in on that, you have to call Customer Care at 1-888-872-3301 starting at 9 a.m.)
Meanwhile, the Fed is set on raising rates. That was certainly fair when they made the decision, given market conditions and rampant inflation.
Now the S&P 500 is stuck at 4,000, or close to it.
Will the volatility continue or will we ping pong-around 4,000 for a while?
Let’s find out …
SPX May 27 IV is still 31+%
Even with the Fed minutes out, the near term implied volatility in SPX is not going away.
VIX was lower Wednesday, but the May 27 IV did not budge. In fact, some believe the market is still expecting a 2% move into the end of the week …
SPX May 27 3980 IV into the close Wednesday.
And a 2% move will be far away from 4,000 SPX.
Granted the VIX dropped 1.11 to close 28.34, I’d really like to see the short term vol get hit to believe things have calmed down.
This week will still be a mover, and Bill and I will address that in Power Gains today. Call Customer Care at 1-888-872-3301 starting at 9 a.m. to join us!
(And there’s a little something special in it for lifetime Big Money Flow and Option Shopper members, so you guys definitely want to be there.)
To Your Trading Success,
AG