🍔The Most Hated Rally

Midweek market review and key charts to know

Welcome to the free midweek edition of MktContext. I am a professional money manager, trader, and investor who loves writing about markets. Subscribe to receive free weekly insights, where we explain the economy and how to time the stock market (yes, it’s possible!).

FOMO rally

August has been all about VIX (the volatility index). After the VIX-plosion, volatility calmed down at the fastest rate ever seen. As traders stepped back in to short volatility, stocks have been systematically dragged upwards. We are now seeing the most hated rally as the SPX is up 8 consecutive days. When markets rise this fast, investors feel FOMO and rush to buy, reinforcing the cycle.

Our paid subscribers will know we bought a tranche last week (great timing near the bottom, might I add) and are waiting for another entry to spend our remaining cash. If SPX continues running, we will force o…