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China just punched back, and for stocks it was a body blow. We’re closing out an absolutely epic trading day – trading week, in fact.
In the chart I’m going to show you in a second, you can see U.S. stocks plummeting right into the storm.
I’m talking about the second straight day of powerful, highly correlated selling. We saw the SPX move three standard deviations, a three-sigma move, and the VIX topped 45. That’s its highest level in nearly five years – since COVID.
But there’s a lot about today’s market action that was totally unique – things we’ve never seen before.
For one thing, I’m looking at some heavy redemption selling – investors selling back to management, rather than out on the open market – that could bring a stiff hangover even looking out to Monday morning.
A two-day hangover… We’ve got to be prepared for what’s coming next, and I’ve got a good handle on what that’ll be…
