Yo Pit Crazies,

The news right now is largely focused on a clash between California Governor Gavin Newsom and President Trump. In response to protesters setting vehicles on fire, Trump deployed the National Guard. Rather than working to restore order, Governor Newsom appears to be using the situation to his political advantage, likely with an eye on a 2028 presidential run. The concept of a peaceful protest seems to be fading, and the incident has sparked a significant social media storm on both sides.

You might expect this unrest to rattle the markets and push stocks out of their zone—but that wasn’t the case. Instead, stocks rallied.

When bad news hits and stocks still rally, that’s a strong bullish signal.

Here’s another one….

VIX futures close down on the day

Notice the significant red across the VIX futures curve—this suggests that anticipated future volatility is becoming cheaper, even as protests escalate and tensions rise. The 2025 LA Riots are likely being viewed as a short-term event. With the VIX around 17—implying roughly a 1% daily move in the S&P 500 ETF (Ticker: SPY)—it appears the market has already priced in a modest impact from the unrest.

In 2025, it seems the market is constantly pricing in the next Trump tweet.