JEPI - Muted Implied Volatility The Mag Three Rally Hurting JEPI (Technical Analysis)
2024-06-19 15:00:00 ET
Summary
- Tech sector dominance has increased since May 1, with NVIDIA surpassing Microsoft and Apple as the most valuable company.
- Low VIX levels have resulted in reduced option-selling income for the JPMorgan Equity Premium Income ETF.
- JEPI remains a large ETF with a focus on generating income through selling options and investing in U.S. large-cap stocks, offering a diversified, low-volatility equity portfolio.
- I highlight key price levels to monitor on the chart ahead of what is usually a bullish time of year.
What a difference a quarter makes. Heading into Q2, the global stock market rally had been broadening nicely. Small caps were participating in the upside while non-US equities were actually beating their large-cap US counterparts. What's more, relative strength was seen in areas away from just the Information Technology and Communication Services sectors. Niches like Financials, Industrials, and Energy were charging ahead even as odds for significant rate cuts from the Federal Reserve were erased from 2024's monetary policy chalkboard one by one....
Muted Implied Volatility, The Mag "Three" Rally, Hurting JEPI (Technical Analysis)