Trading a VIX 30 environment is not the same as trading a VIX 15 environment when you’re an options trader. As the VIX rises, especially in a steady, upward trend, a variety of factors change in the stock market. Stock Market Changes with a High VIX Typically, in a high VIX environment where the VIX is above 17, and especially above 23, I see: Significantly increased intraday ranges in the indexes and high-momentum stocks A market sensitive to news-related developments … Read more

Whenever the market is falling, people want to know whether it’s too late to short. It’s easy to think it’s too late when it’s fallen so much, but in reality, the Nasdaq is only down about 10% year-to-date. In all respects, that’s a pretty minor buy-the-dip pullback and moment in time. I wouldn’t consider a 10% correction “too late to short.” Of course, this has been a (mostly) news-driven correction, and one that ideally could provide a fantastic buy-the-dip moment … Read more

While indexes and key sectors have been falling, there hasn’t been true capitulation in the market. This is what we generally need to hit and maintain lows on a downward move like this. However, in this case, it has been a somewhat volatile but steadier decline than anything. Today, that is changing, as the Nasdaq broke its lows set last August and is down another -1.93% as of this writing. Capitulation usually comes relatively soon after major lows are broken, … Read more

Nasdaq & S&P Remain Below Their 200-Day SMAs The Nasdaq and S&P 500 both closed below their daily 200 SMAs again. While it’s not the first time they’ve dipped below these levels, they are now remaining below them on the daily charts. This is the part institutions respect: the failure to reclaim the 200-day moving average. The 200 SMA isn’t just a line on a chart — it’s the trend filter most institutions and algos use. When price stays below … Read more

AI Infrastructure Buildout Hey traders, If you’ve been following the AI boom, you may know that the big hyperscalers (AWS, Azure, Google Cloud) can’t keep up. Demand for raw GPU compute and the infrastructure required to run high-level AI models is expanding exponentially as more companies and individuals adopt AI. Multiple large companies, including Meta, Amazon, Dell, and Block, have already come out this year and stated that they are using advanced generative AI rather than hiring more workers, and … Read more

Market Overview: Breakdown Mode with Major Red Flags The Nasdaq & S&P futures broke through the 200 SMA on the daily charts, the most critical line in the sand on this time frame. This is a key technical level because it’s so widely used and watched, and ultimately breaks in this zone lead to more selling. Selling begets more selling! That means the next downside target is the lows on the year. If and when those lows break, I will … Read more