(Red Flags Everywhere) September 03, 2024 | [Read Online]( [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20Don%27s%20Trading%20Desk&body=%F0%9F%9A%A9Why%20Today%27s%20Sell-Off%20Should%20Concern%20You%20%F0%9F%9A%A9%3A%20%28Red%20Flags%20Everywhere%29%0A%0Ahttps%3A%2F%2Fdon-kaufman.beehiiv.com%2Fp%2Ftodays-selloff-concern) Don Kaufman here, If you're not paying attention to what happened in the markets today, you're missing some serious warning signs. Let me break it down for you. The NASDAQ 100 took a nosedive, dropping 3.1% in its biggest decline since July. And Nvidia shaved over $260 Billion from its market cap, as spiraled down by nearly 10%, putting heavy pressure on the AI space. But that's just the tip of the iceberg. What I'm really keeping my eye on is the VVIX - yeah, you heard that right, not the VIX, but the VVIX. VVIX: The Ultimate Fear Gauge For those of you who don't know, the VVIX measures the volatility of volatility. It's like the VIX on steroids, and it's a much better indicator of market fear. Today, the VVIX surged a whopping 38.4%, closing at 129.79. That's not just a blip on the radar, folks. That's a full-blown explosion. Why does this matter? Because when the VVIX goes crazy like this, it's a sign that the smart money - the folks who really know this business - are hedging like there's no tomorrow. They're battening down the hatches, preparing for a storm. And let me tell you, when these guys start hedging, you better pay attention. Volatility Posturing: A Red Flag The volatility posturing we're seeing is an extremely rough sign for the days and weeks ahead. Don't believe me? Let's look at the expected move on the S&P 500. Going into the weekend, we had a $77 expected move. Now? We're up to an $88 expected move, and we've already been through a trading session. The SPX closed down 119 points, a 2.1% drop. That's not chump change. Options Anomaly: When Decay Becomes Growth Here's another kicker - this week's options aren't decaying like they should. They're actually adding value because short-term volatility has exploded. Options are a ticking time bomb as they approach expiration. But when volatility spikes like it did today, itâs like slowing down time. That's not normal, folks. That's the market screaming that something's wrong. Economic Slowdown Signals And if you need more evidence that we're headed for trouble, look no further than Crude Oil futures, which declined by 4.2%, and Caterpillar (CAT), which dropped 4.4%. Oil and Caterpillar? That's not just a market hiccup. That's the market screaming "economic slowdown" at the top of its lungs. The Bottom Line So, what's the takeaway here? The market's telling us a story, and it's not a bedtime fairy tale. It's a horror story. The smart money is preparing for a rough ride, and if you're not at least considering your hedging strategy, you might be in for a rude awakening. Remember, in this game, it's not about being optimistic or pessimistic. It's about being realistic. And right now, the reality is looking pretty grim. Stay alert, stay hedged, and most importantly, stay safe out there. ð Launch Your Trading Success with IN/OUT Advantage ð â° Offer Expires at MIDNIGHT TONIGHT! â° Exciting profit windows are opening up, and you don't want to miss out! Secure LIFETIME ACCESS to the IN/OUT Advantage before this offer expires! ð Here's Your Trading Arsenal: - ð® IN/OUT Advantage Weekly Trade Alerts: 520 over the next decade!
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