Yo Pit  Crazies,

Now, where will all that tariff money go? 

Hard to think about this right now, but the US government has collected hundreds of billions in tariffs, and the Supreme Court is asking: well, how do we give it all back?

It’s quite possible that they take the tariff power away from the President. 

That caused a lot of concern and worry early Friday for traders just wondering how this is all going to play out. 

Why Traders Changed Their Minds

Maybe it was scuttlebutt from Congress on who is going to cave first: is it the Democrats or the Republicans? 

Or was it Schumer going across the aisle and saying, “Hey, we’ll just take a small amount of one year of subsidies”?

Whatever the compromise is, there was some kind of deal in the works, and the market went from down one percent to up on the day at one point.

The real tell, though, is that VIX ended the day down after being as high as 22. It dropped to 19 after SPY rallied from the day’s lows.  

The first time in a while VIX closed lower on the day.  

It appears its 10 day ascent is over.

Stocks Really Don’t Sell Off

Here’s the thing: stocks really don’t like selling off. 

When VIX gets to 22, shares are normally down almost 2%. But it didn’t really materialize. There was very little conviction in the selloff, and for a lot of the day, stocks were never down.

A stock I followed in Flash 7 was Peloton (PTON), which had earnings today. It had a second consecutive profitable quarter and picked up momentum by the end of the day. 

But overall, there just was very little acceleration to the selloff.

Shutdown Moonshot

That caused me to set up a moonshot play for my RIPZone students where I’m buying a long-term call in SPY and a short-term inexpensive put butterfly.

If a weekend comes to pass where there’s some kind of a deal, stocks will moon. SPY probably hits all-time highs, allowing this trade to do very well.

The reality is earnings were good last month. Stocks came off their highs somewhat, but there are still lots of bargains to grab. It might not be the high-profile big tech stocks that led this year, but  there are plenty of other stocks that can moon.

That should take the S&P 500 back near 690 and possibly even 700 into Christmas.

And before I go, make sure to check out Hans’ Income Summit 2025 event on Monday and Tuesday. It’s live and you can check it out for free by following this link

To Your Trading Success,

AG