Volatility Beast Awakens

By Don Kaufman

Just when you thought things were settling down, the volatility beast is stirring from its slumber. We closed out this week with the S&P up about 1%, or 57 handles, but don't let that fool you.

We're way off the highs, and this marketplace has turned into Mr. Toad's Wild Ride.

Now, I could spend all day breaking down the technical’s for you, but let me give you a taste of what's really going on:

• The VIX might not be screaming yet, but the VVIX? That's a whole other story. We're talking double the volatility of Tesla here, folks.

• The NASDAQ is lagging, and that's a massive red flag. Remember, it's the NASDAQ that got us to where we are. If it doesn't lead, we're in trouble.

• Financials leading the rally? That's like getting into a lifeboat with Jamie Dimon on a sinking ship. I'll take my chances in the open sea, thank you very much.

• We've got a $105 expected move for next week. That's 20% more risk than we just came out of. Big tech earnings and the Fed are both on deck. Hold onto your hats!

Look, I could go on and on, but here's the bottom line: The volatility beast isn't fully unleashed yet, but it's definitely waking up.

If you got knocked around in the last two weeks, it's time to tighten up that discipline and get ready for some wild two-sided action.

Want the full breakdown?

Head over here and check out the full video. Trust me, you don't want to miss this one.