Remember that Upside Skew I was talking about Friday?

Daily Pit Stop [fstp, logo, header] January 29th, 2024 [ag views, logo, header] Remember that Upside Skew I was talking about Friday?  It appears that the USTreasury dropped a note to investors that quarterly funding needs will be lower. That is bullish for bonds and adds some hype to the FOMC meeting Wednesday. It also means stocks like going up faster than they go down. Take a look at the S&P 500 Index (Ticker: SPX) chart below. Welcome to the topsy turvy world of Federal Reserve influenced markets. I added some call spreads and calendars to Weekly Profit Cycles and OP Mentoring. Luckily before the pop. [FOMO] SPX 5 day chart I also think VIX will hold here until after the news this week. Friday might see a nice vol crush if this keeps playing out like it started. - AG  [logo, pit profits] - TRD XSP strangles close for 21% gain - TRD VXX strangles close for 6% gain Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [logo, header, fvix] Make or Break Moment For The Market Hey Traders! In today's video we'll cover: - Will the market hold approaching the FOMC - Levels In The VIX and SPY - Earnings preview [yt]( [Click here to watch the video!]( - Mark  [fpri] The Most Critical Signpost for Stocks Hey Income Hunters, Post Covid and through 2023 the market has been all one trade … Stocks and bonds trending together. This major historical change is due to government bonds trading more like risk assets than a risk=free hedge within a 60/40 portfolio. Hence, the long 60% stocks/40% bonds portfolio has been the biggest loser in decades. Over the same period, the much better risk adjusted diversified portfolio has been long stocks and long the dollar. [fpri] What this chart is showing is that by the end of 20it trended 23 stocks and bonds trended in the same direction 70% of the time. It also shows that the dollar was the better hedge to stocks by showing a negative correlation to stocks over the same period (teal line). That makes the US Dollar the better hedge in a diversified portfolio for investors. [Read on here to see how this pair is signaling the potential for a major move in the months ahead.Â]( - Bill   [glossary, logo] There are plenty of terms in the trading world that need explaining. The Option Pit Glossary is here to help. Today's phrase is: Black-Scholes - The first option-pricing model that factors in the underlying price, the option’s strike price, the amount of time left until the option expires, the current level of interest rates, dividends, and forward volatility (implied volatility) of the underlying security to generate an option’s theoretical value. 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