ACTV - Volatility Is All But Gone While The Economy Sends Mixed Signals

2024-06-13 22:25:42 ET

Summary

• The latest economic data came mixed when all things considered.
• Both bulls and bears are making arguments that make sense on paper.
• There is plenty of uncertainty, but volatility and volume are at historically low levels, which causes even more confusion.
• I'd remain invested but add some hedges since put options are very cheap due to historically low VIX.

Last Wednesday was a quite busy day for the markets as we witnessed release of the monthly CPI report as well as Fed's monthly rate decision followed by a speech by Jerome Powell on the same day. The market's reaction was slightly positive but also mixed considering Dow ( DIA ) was red while S&P 500 ( SPY ) and Nasdaq ( QQQ ) were green but even they gave up much of their gains in the later part of the day. Prior to Powell's speech SPY was up 1.4% but it ended the day being up "only" 0.8%....

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