How To Navigate The Volatility Vortex

By Don Kaufman

What a week we've had in the markets!

Let's break it down.

At first glance, you might think we're massively unchanged for the week in the S&P 500.

But don't let that fool you.

We've seen some serious action, from precipitous drops to face-ripping rallies.

I'm seeing signs of what we might call a "volatility channel" or even a "volatility box." We're oscillating between key levels, and breaking out of this range could lead to explosive moves in either direction.

Now, let's talk about that VIX spike to 65.

Spoiler alert: it's not as dramatic as it seems.

I'll explain why pre-market VIX readings can be misleading and why we need to dig deeper for the real story.

One thing I want to stress: don't assume volatility spikes always coincide with market bottoms.

History shows us it's not that simple. I'll give you some examples that might surprise you.

We also need to keep an eye on the bond market.

There might be some interesting opportunities there, especially if you believe volatility is still on the menu (spoiler: I do).

And speaking of opportunities, I've got my eye on a particular tech giant that seems suspiciously unscathed amidst all this chaos.

I'll share my thoughts on why this could be a prime short candidate.

Finally, brace yourselves for next week.

We've got CPI data coming out, and it could be a real doozy.

I'll explain why both a hot and a cool print could potentially rock the markets.

Want to dive deeper into all of this?

Check out the full video breakdown where I go into much more detail, complete with charts and analysis.

Trust me, in times like these, you need all the insights you can get.

Watch the full video analysis here