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Below is a time-delayed excerpt from our live updates for members.
Updates 11:10 AM EST - Friday 12/18/20
$SPX $VIX TSLA
At 12:55 AM, we posted the full analysis explaining that $VIX may rise today based on the signal from $VVIX. Indeed $VIX rose a bit, and $SPX dropped correspondingly this morning.
This is not surprising. We alerted you earlier this week that today will be one of the biggest trading days in history. In addition to quadruple witching, TSLA is being added to $SPX at the close.
Indexers tied to $SPX will need to buy $80B worth of TSLA, which means issuers will have to sell $80B of the remaining stocks in $SPX. Tesla will likely be roughly 1% of the S&P 500′s market capitalization after its inclusion.
So the question is is this just a dip or the start of a much bigger sell-off?
Read the rest of this analysis and get our highly accurate VIX-based trading signals for SPY QQQ TQQQ TNA here.