Swans are on the water this week… White, black, gray – hard to tell from here, of course, but whatever comes our way, we’ll be ready to handle it.
This week brings a full truckload of data: reports from the Magnificent Seven giga-caps, a Fed decision, and a key tariff expiration. If markets take a sharp dive, some might call it a black swan… but of course they’d be wrong.
Because, let’s be honest: These risks are hardly hidden. Institutions see them coming, and they’re positioning accordingly.
Take the SKEW index. Even with Friday’s drop, it’s still sitting at very elevated levels – an unmistakable sign of aggressive hedging (buying puts, selling calls). Meanwhile, forward volatility expectations spiked last week, reaching their highest levels since February.
When you see institutions both pricing in volatility and hedging heavily, it’s not the time to be passive. The question is: Will you take this as a signal to do something proactive? I hope the answer is “yes.”
Let’s look at some ways to trim risk ahead of this week’s events, whatever they might be.
Here’s the strategy to consider…
