Good day all,
Looking back over the years, there were times when former US President Bush, Obama, and even Trump have caused havoc in the markets. Now it seems that baton has been passed to Fed Chairman Powell to be the cause of panic selling before even completing his first sentence. For the week, it is hard to believe the SPX started at 2740, 2700 seems ages ago. Closing -100 SPX points for the week has sentiment shaken, to say the least. What next? As much as it pains me to say, it looks like we are too close not to test Dow 24,000 and SPX 2600 having closed at 24,286 and 2,632 respectively. It is likely that we see these big round numbers before an overdue bounce.
Astute Insiders (subscribers) partook in the volatility spikes, seeing 94% returns this week, using our SPX hedge and volatility to place greater protection on capital for credits. That’s right, we have placed downside protection trades in the SPX for credits. Considering the possibility of profits when the trade placed is going in the wrong direction… Hard to argue with that.