Postcards: A Crazy Chart… And Specific Moves to Make Today

We're heading into a three-day weekend... after Quad Witching. Next week should be VERY busy... here's what to watch.

postcards from the florida republic

An independent and profitable state of mind.

Friday, June 16, 2023

Dear Fellow Market Expat,

Prepare for a three-day weekend.

But before you turn off your computers…

I need to show you a chart.

Don’t adjust your screen - your computer isn’t broken.

It’s just that this chart you’re going to see is absolutely bonkers.

So, strap in before you unplug…

This Is the Mathematical Twilight Zone

The S&P 500 Volatility Index (VIX) is under 14.

That’s a level we last saw back in early 2020 - pre-COVID…

At the time, lots of fund managers were making gobs of money by selling volatility calls to anyone willing to bet the market would tank.

Now, for a very long time, this strategy has worked out.

But when things go awry… the poorhouse becomes home.

It’s one of the reasons that we’ve called this strategy “picking up pennies in front of a steamroller.”

When it goes south, it goes south fast - so fast your head can explode.

Today… investors are betting big on the markets pushing higher…