[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Sunday night’s headlines were unsettling as an onlooker – you could watch the carnage erupt in big Asian markets like Korea and especially Japan, where the Nikkei just had its roughest session ever. So I knew even then it would only be a matter of hours before the carnage jumped back over the International Date Line and spread to U.S. and global markets. The VIX blew out to 65 pre-market and it initially looked as though we’d go “limit down” in Russell 2000 (RTY) and NASDAQ (NQ) futures. But, the selling abated and, wouldn’t you know it, the intra-day rally was on! You have to question the longevity of such moves, especially against the backdrop of the huge Treasury rally last week and the strengthening yen – that’s what’s signaling the unwind of the carry trade. Yes, today was a

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] It looks like, after a long, long run of being upside-down, bad news is bad news again… Not-great jobs numbers are pointing to an economic slowdown; crude oil prices are actually pricing one in. Bond prices are in full-on “duck-and-cover” mode.” Second-quarter earnings have been kryptonite for tech stocks. Investors are getting a rude awakening – maybe AI isn’t all it’s cracked up to be yet. The volatility beast is running wild over the unprepared. We’re going to take a look at VIX, VVIX, and the volatility futures and I’ll show you what to look for. By mid-morning, the VIX (which started the week just above 16) had almost hit 30 while the S&P 500 and NASDAQ were both down more than 2% after 3:00 PM. In other words, this was a really rough day, and today we’re going to

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] The “feel” of the market is strange right now. It feels like someone saw a fire and pulled the alarm… but investors are essentially treating it like a fire drill. We’re not seeing panic, chaos, mass capital destruction – just a big selloff of the marquee names like Nvidia on the NASDAQ. Stocks like NVDA, AVGO, and AMD were sold off anywhere from 6% to 8.5%. In a market like this, safety is possible. In fact, it’s downright lucrative. Classic defensive sectors like utilities, healthcare, and consumer staples are packed with opportunities. No need to panic – Dominion Energy, Abbott Labs, Procter & Gamble, Colgate-Palmolive, and plenty of others, are looking great right now, proving that there’s still plenty of action on the long side. We’re going to look at those names and a lot more in tonight’s video…

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Fed Day played out about how we expected – a massive buying bender before the FOMC announcement and JPo press conference… and some selling afterward. (And by “some,” I mean we’re off 40 handles since Powell spoke.) But the price action I’m looking at right now, and which you’ll be seeing in just a second, is a quintessential rippin’ rally. And that means volatility is coming. I’ve been pounding the table on this for a few sessions now, and I’m seeing nothing that would make me want to change my tune. Buckle up, helmets on. But if you’re not a believer yet, we’re going to look at volatility futures here and you will see – with your own eyeballs – that we haven’t seen the crush yet. It’s coming. Here’s what to do…

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] It’s tough to call them the Magnificent Seven anymore, at least with a straight face, but these stocks – once the leaders among leaders – are all down today. It’s one of the starkest reminders yet that tech is becoming a hurdle for the indexes to clear, rather than a springboard for launch. The selloff is beginning to attract the attention of the crowd, the late money. So I’m not exactly optimistic about the prospects for new highs on the NASDAQ, but I do think we could see a new all-time high in the Dow Industrials, an index a lot of pro traders overlook. Obviously, a run to new highs there depends a lot on what the Fed says and does tomorrow. The odds of a September rate cut, at least according to the CME Group data, are now at

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] It’s really tough to overstate how important the next four sessions are going to be. The Fed will begin to lay out its plan for rate cuts. Some of the biggest companies on the planet are announcing earnings. And there’s a little employment announcement coming Friday. So, saying there’s “significant” potential for volatility is putting it mildly. Last week’s bout of chop was sparked by negative reactions to Google and Tesla earnings. Now we’re staring down the barrel of Microsoft, Apple, Meta, and Amazon. So the stakes are even higher. Not fazed by the prospect of four of the Magnificent Seven reporting? Well, how about those rate cuts? There’s a lot of hay made these days about a September cut… but the market is pricing in three cuts by the end of the year. That’s astonishing given the inflation still

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] On Wednesday, I told everyone who knows what’s good for ‘em to get their helmets on, because it’s about to get very choppy. Well, I hope your choice of protective headgear is comfy and stylish because my prescription hasn’t changed. In fact, if you’ve got two helmets, put ‘em both on. The VIX and all the volatility instruments out there are finally catching their stride and it’s brisk, baby. Take the bounce we saw this afternoon after a midday dip. The leaders? The financials. If I were shipwrecked and it was Jamie Dimon who came by in a lifeboat… I’d take my chances on the island. That’s how we should be looking at this new “leadership.” Tech was up “listlessly,” to put it politely, and the NASDAQ is showing signs of “wear and tear,” to put it even more politely.

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Note: My friend and colleague Gianni Di Poce will be on TheoTrade Live tomorrow morning to talk about how to use AI for a shot at doubling the markets. AI looms large right now… We were treated to an unexpectedly strong second-quarter GDP print today – 2.8% on an annualized basis. That’s almost double last quarter’s performance. So you might think we’re firmly in “growth” mode out here in the wider economy, but today’s sector-by-sector price action looked more like a recovery or early growth phase. But you’ve got to take what you’re given. Industrials, energy, and financials all outperformed but gold and (surprise) tech stocks took a beating. In fact, a lot of tech and AI stocks fell back to lows – and some, like MSFT and GOOG are still falling as investors start to question the AI narrative.

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Wow! Yesterday was an absolute snoozefest and today… we just closed out the worst day for stocks since 2022. You awake yet? Good. It had been creeping in around the edges lately, but volatility hit the markets like the Kool-Aid today. We saw the VIX skyrocket more than 22% today to top 18 – it had been hovering in the 12 region just 10 days or so ago. We were driving hard toward the lower edge of the expected move near the close, which is crazy when you consider we came close to the upper edge yesterday. There’s some real damage being done out here in the markets, and we’re going to look at exactly where that’s happening – and what to do about it. This isn’t the time to go out and take on risk. More importantly, we’ll look

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] The recent massive selloff in tech should prove what I’ve been saying for weeks now: The one-time leadership sector is slowing down. Nature abhors a vacuum and the stock market’s not all that different. The hunt for a new leading sector is on, and like some other groups I could mention, there are suddenly new contenders… though no outright winner. Real estate, at least as tracked by the $33 billion VNQ ETF, is showing emerging strength; that fund is up about 6% for the month. Energy is starting to show as well; XLE is down about 0.82% over the past month but is paring its losses recently. But a 6% gain and 0.82% loss aren’t exactly a flashing neon “RISK ON!” signal. I have been and remain enthusiastic about what I’m seeing in the biotech sector and, by way of