🍔Volatility Subsiding; Risks Still High

Midweek review and charts we shared this week

Welcome to the 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 show you how to understand the economy and time the stock market (yes, it’s possible!).

Week in review

The markets have calmed down from last week. But bottoms are messy and we may not be out of the woods yet. We're still seeing big risks out there.

As we discussed in our premium Sunday letter, the VIX (the market’s “fear gauge”) has been subsiding. The VVIX (volatility of VIX) has also behaved well, indicating a return to stable market conditions.

The SPX and QQQ have been recovering and are buyable now. We made the recommendation on Sunday to buy if it met our criteria. That said, it’s still murky so buyer beware. The worst of the VIX-plosion is likely over, but that doesn't preclude the p…