War! (We’re Still Red)

They've lost the plot...

Action to Take:  Monitor how Treasuries, the dollar, yen, and gold move in sync as the market adjusts to new risks. With the VIX rising above 16, increased volatility creates opportunities to write calls against positions with significant gains since the election. While profit-taking may seem to drive the narrative, underlying stress in the credit markets is becoming evident beneath the post-election enthusiasm. If we see a significant sell-off in the first hour, consider adding to defensive positions near the 3rd standard deviation of the Volume Weighted Average Price (VWAP).

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Momentum: So… this is why we went Red on Friday. I didn’t see the threat of nuclear war escalation during a Lame Duck Presidency on my bingo card… but here we are!!! 

Markets are losing post-election momentum as the Fed’s cautious stance tempers the hope for a December rate cut and war escalation rises.

The S&P 500, which hit record highs, has now surrendered most of those gains, while …