Markets Just Got Real Ugly

The Week That Woke the Bear + Volatility’s back ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Markets Just Got Real Ugly]( The Week That Woke the Bear + Volatility’s back [Josh Belanger](joshbelanger) Sep 6 joshbelanger   [READ IN APP](   The bell just rang to close out a shortened trading week. And if you thought things were calm, think again—markets just got serious. It’s funny how quickly things turn on Wall Street. You've probably heard the saying, "stocks take the stairs up and the elevator down." Well, this week, they didn’t just take the elevator; they plummeted. Let’s start with today’s big story—the Nonfarm payrolls report. Hiring fell short of expectations, with only 142,000 jobs added last month.Not a great number, but enough to make Wall Street think the Fed might need to get more aggressive with rate hikes. Why? Because it signals the Fed could be behind the curve, forcing them to overcompensate in the face of a looming recession. The result? S&P 500 futures spiked at the cash open, with traders eyeing a potential rally. But then, just 15 minutes into the session, it was like someone pulled the rug out from under the market. A wave of sell orders flooded in, and the market spent the rest of the day getting hammered. By the time the closing bell rang, the S&P 500 was down 1.75% for the day and a brutal 4% for the week. The Nasdaq? It got hit even harder—down 2.68% today and 6% for the week. Now, here’s where things really get interesting. The VIX, Wall Street's "fear gauge," closed at 22.38. That’s up 45% from last week. To put that into perspective, it’s about twice the volatility we’ve seen for most of this year. And it’s not just the numbers. The speed and size of these moves are a real red flag. The S&P 500 saw a 250-point swing this week, while the market had only priced in a 77-point move for the shortened four-day trading week. That’s a 3-sigma event, a rare occurrence that means we’re in uncharted waters. And don’t think it’s over. Next week, the S&P is pricing in a potential 127-point move. In either direction. So, why is this happening? It’s not just one thing. We’re seeing oil prices tank, signaling a global slowdown. Bitcoin's in free fall. And to top it off, credit card debt has ballooned to $1.1 trillion, with defaults hitting record highs. Everyday Americans are tapped out. The Federal Reserve might cut interest rates, but will it make a difference? Not likely. People are broke, and lower rates won’t change that. The markets are heading into a storm, with recession looming large on the horizon. While most people panic in times like these, smart traders see opportunity. Volatility like this can open the door to some of the best trades you’ll see all year—if you keep your head and stay disciplined. This week’s action may just be the tip of the iceberg. Look at the monthly chart of the S&P 500. What we saw is barely a blip—but it might have woken the angry bear that's been hibernating for too long. Smart trading, Josh Belanger You’re currently a free subscriber. Upgrade for the full experience and receive exclusive special reports like "How to Get Rich in The Stock Market" and "Congress' Secret Stock Playbook: The Top 5 Power Picks Revealed”. [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()