Making Sense Of Today's Slopfest

July 25, 2024 | [Read Online]( [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20Don%27s%20Trading%20Desk&body=Making%20Sense%20Of%20Today%27s%20Slopfest%3A%20%0A%0Ahttps%3A%2F%2Fdon-kaufman.beehiiv.com%2Fp%2Fmaking-sense-todays-slopfest) What a crazy week it’s been, and we still have one more trading left before its over. There’s a lot to digest so let’s jump into it. First, today’s move. We saw heavy selling pressure once the market opened, some panic selling in tech, a nice bounce in the mid-afternoon, and then a weak close to wrap up the day. The intraday volatility is insane right now. Nvidia opened at $113, hit a low of $106.30, bounced to a high of $116.63, and closed at $112.28. But even the S&P 500 was pretty wild…trading in a 181 point range. Remember, the expected move this week was 85 points. The S&P 500 nearly did a round-trip today, almost hitting the top end of the weekly expected move range, but ultimately closing below the bottom of the range. What I’m Looking At Heading Into Tomorrow’s Session I think today’s late day sell-off could potentially lead into an avalanche of selling. The bulls had a chance to really get the momentum back but failed. Which now has me looking at the bond market. Will traders start buying up bonds due fear of a deeper market correction? Money has to be getting nervous… One thing I’m playing close attention to is the VIX futures. Specifically, if the VIX futures become inverted. 🚀 A.I. Trading Revolution 🚀 Unlock the power of A.I. Timing Webs and transform your trading strategy! - 💡 Gain exclusive Wall Street insights - 📈 Boost your trading performance - 🔮 Stay ahead of market trends - 🌟 Join the A.I. trading elite Ready to revolutionize your approach? [Explore A.I. Timing Webs Now!]( That’s when the near-dated contracts are more expensive than the later-dated contracts. You see, an inverted VIX futures curve is considered bad in the stock market because it signals that investors expect higher volatility in the near term compared to the longer term, often indicating immediate market concerns. This typically leads to increased risk aversion among investors, can precede market downturns, and has historically been associated with periods of significant market turbulence. Make sure you’re watching VIX futures in the morning. Another thing, is although we’ve seen some heavy selling pressure in tech, to have a true panic selling market event, everything must go. Right now, we are only seeing hard selling in mainly tech. For example, the Russell 2000 was actually up today by 1.25%. I wouldn’t necessarily call the Russell a safe haven. Of course, the dynamics of the situation can change quickly, especially with some big earnings coming next week. Final Word In conclusion, we're facing a highly volatile market with potential for significant moves in either direction. Stay alert, manage your risk carefully, and be prepared for anything as we head into the final trading day of this tumultuous week. As always, keep a close eye on the broader market indicators we've discussed, and don't hesitate to step back if the risk doesn't align with your trading strategy. Stay safe out there, and I'll see you in the markets tomorrow To your success, Don Kaufman P.S. Just wrapped a live market chat with Gianni Di Poce. We hit on a little-known AI quirk that's making waves. Missed it?[Catch the replay](. Trust me, it's worth your time. [fb]( [tw]( [ig]( [yt]( Update your email preferences or unsubscribe [here]( © 2024 Don Kaufman - TheoTrade PO Box 24790 Christiansted, Virgin Islands 00824, Virgin Islands, U.S. [Terms of Service](