Silver futures imploded 33% intraday today. The contract now requires $126,000 of margin for a single lot. At the same time, the S&P 500 hit a new all-time high this week.
That disconnect should terrify you.
The S&P finished the week essentially flat despite record volume and historic swings. Volume exploded Thursday. We did almost nothing on Monday through Wednesday, then the market erupted.
Here is what I am watching in tonight’s video:
- Order flow just got angry inside the 6850 to 6950 inflection zone I have been tracking for weeks.
- VVIX, the volatility of the VIX itself, is soaring at 110 while the market sits near record highs.
- The February and March volatility futures have compressed to just 85 cents apart, signaling the next 19 days could be as volatile as the next 47.
- Zero DTE equity options go live Monday on Apple, Google, Nvidia, and others. This will change the nature of the beast.
- The expected move for next week is $117 to $118, identical to this week despite no Fed announcement.
The volatility beast is back. It looks sustained. Big firms are buying VIX calls as a downside hedge. The VVIX at 110 is the kind of reading that says get under your desk.
If this week starts quiet, rest assured it will not end that way.
Click here to watch me break down the exact levels and what to expect next week
Don Kaufman
Chief Market Strategist, TheoTRADE
