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As I record this, I’m watching the S&Ps drift into the cash close with all the energy and conviction of a wet sponge.
This situation puts one big blip on my radar: the market is sleepwalking into risk. Yeah, we’ve had an epic run from SPX 500 to 600, but let’s not kid ourselves… Upside from here looks like slim pickings… while downside risks look more like a yawning abyss.
And I mean “massive.”
We’re talking trade war rhetoric heating up, while speculators are bidding up any frothy junk that’s not nailed down.
The hell of it is, volatility futures are actually pricing in fear… just not where you’d expect it, and not to the degree necessary. Again, this isn’t about getting “beared up,” it’s about acknowledging risk/reward imbalance and setting up strategic downside plays – the kind that’ll pay you while everyone else is losing their shirt.
In tonight’s update, I’ll walk through where the market’s blind spots are.. and exactly how we can trade them…
