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
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.
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.
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.
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