Updates for Monday 9/13/21

We trade 3x ETFs such as TQQQ TNA SOXL LABU UVXY using proprietary analysis of volatility. 

​Updates 12 AM EST - Monday 9/13/21

This coming week
Here's the economic calendar for the full week.

Monday:   Treasury Budget
Tuesday:   CPI
Wednesday:  Industrial Production; $VIX Expiration
Thursday:   Retail Sales; Jobless Claims
Friday:   Consumer Sentiments; Quadruple Witching

Wall of worry
The big three worries below are part of the reasons behind the recent analyst warnings of a slow-down in the stock market this autumn.

• Fed tapering 
• Slowing growth due to Delta variant
• Inflation

In addition, market is nervous about the approaching debt ceiling.   Traders will be closely eyeing the Treasury Budget report on Monday.   It is eye-opening to look at the numbers.    

Now that Congress has missed the debt-ceiling deadline, Treasury will have to start emergency cash conservation steps on Monday to avoid busting the Federal borrowing limit.   (And you think you have a problem with overspending on your credit cards!)

To add to the doom-and-gloom mood, don't forget it's VIX expiration and Quad Witch this week.   To get an in-depth understanding of why expiration week can generate a spike in volatility, we recommend that you read this Twitter thread about the effects of the options market, gamma, vanna and charm on stocks.

Good News?

• ETF inflows continue to rise, adding to overall market liquidity
• Sometimes bad news is good news.   Market rarely crashes when a bunch of analysts come out to warn.

Volatility
The following charts track different aspects of volatility.   They are all showing similar theme though.   There is a high probability that $VIX $VXN $RVX will all spike higher some time this week.   

Subscribe now to read the rest of this post.   Subscribe at our introductory low rate of only $39 per month!   

---