Is Volatility Surge About To Hit Wall Street?
A market gone “bonkers” hit a bump midweek as it continues to baffle traders.
Is today’s tumble a sign to not chase “Wednesday’s strength?”
Or will the market regain its rally footing in a race to match all-time highs?
The prevailing longing for a recovery in the economy and a coronavirus vaccine (along with Fed-infused liquidity) continue to bolster the market.
There appears to be no end to “hope-ium” that keeps Wall Street out of touch with Main Street.
It’s a continuing disconnect from the reality of a flailing economy, chaotic social unrest, and increasing foreign trade tensions.
Seasoned traders expect something will happen that causes the market to flush.
Many are maintaining a “bullish bear” plan to play the market to the upside with an eye for a quick turn.
There is growing confidence that a surge of volatility is about to be released. Setups, like an iron condor that will benefit from a move either way, are in the works.
With this market, Friday might produce a bigger event than anyone expects.
We Saw: More job losses, more social unrest, more “hope-ium” –
- Key indexes stumbling after days of surging gains
- Depressing unemployment rate pushing 20%
- Big tech leaders in a spat over free speech
We’re Watching: … for bullish plays before a setback –
- Airlines, travel stocks catching a bit of a tailwind
- Most S&P sectors faltering in daily session
- Action in: TSLA, CHGG, NFLX, PTON