VIX closing at year lows

BY ANDREW GIOVINAZZI

May 10, 2024

Yo Pit Crazies,

You can catch Licia Leslie and her Prima Pitchfork course here. Learn to find potential breakouts and ranges for stocks you want to trade.

I love my students but in the Pro Chat room they send me charts, trades, jokes and just funny stuff sometimes.

Here is one from one of my favorite students Clete, who is also a cattle rancher.

This bull escaped the castration line. So did SPX as we got to a whisker of all time highs again.

Is there some confirmation that this bull does not get cut off early!

VIX might have a clue

VIX closed at a 2024 low today

Rallies with confirming, dropping VIX numbers tend to stick. The reason VIX is dropping is that there are bolder sellers of options driving down prices. Traders are seeing less reasons to be worried. Right now, we have a CPI number next week and traders are dropping VIX like crazy into that number.

It is almost like they know what the number will be.

Both VVIX and VIX are at lows with demand for VIX options very low. This is how new lows in VIX are made. Shorting this market in 2024 has been a rough game. For right now, the market is looking for fresh highs in SPX and lows in VIX.

I know it is hard to believe, but that is how it happens.

To Your Trading Success,

-AG