Week of August 12

Correction likely has more to go

Recap of last week

Extreme volatility has returned. Last Monday the VIX printed over 65, the highest such read since 2020 during COVID and 2008 during the Great Financial Crisis. Not for the faint of heart. As always, great volatility offers great opportunity to those brave and smart enough to seize it.

Monday there was blood in the streets, and we were buying. An opportunity like that comes along once or twice a DECADE.

On Wednesday, after the BoJ pivot rally faded 3% intraday to close red from deep green, we warned that it was the BEARS at a disadvantage not the BULLS. That was a timely warning as the next day SPX posted its best day since the depths of the 2022 bear market. Closing up over 3% on Thursday and Friday.

We are managing a couple swings now, but we likely see more volatility in the near term rather than a V to all time highs.

Next move for markets