Last June, you could just kind of tell a dark cloud was hanging over the markets…
And the news coming out, whatever it was, was NOT going to be pretty.
The biggest tell was the way the Biden Admin tried to soft-play the CPI numbers before they came out.
I think the actual number that dropped was 9.1%... but whatever it was the markets swooned.
Every stock, no matter how good the fundamentals or the long-term case was… it didn’t matter in the slightest…
Because if it wasn’t nailed to the floor, it was going to get sold to help panicky investors de-risk.
For the better part of the summer we’ve been on the “Great Macro Conveyor Belt”...
No matter how well you did your homework, you ended up with a stomach ache because individual assets have been tied to the broader market.
Bob Dylan had a hit song in the mid 70s called “Tangled Up In Blue”...
… but I think even the most studious investor feels like they got tangled up in black and blue.
It’s like being in the wrong place at the wrong time when a bar brawl breaks out…
You didn’t have to say a word or throw or throw a punch to end up with a shiner.Lately, we’ve been bouncing off the lows and we’re screaming up into some stiff resistance levels.
And almost everyone is wondering… should I jump on the first pullback and chase this raging bull up on the hill?
Or should I hang back and wait for a retest of the lows?
Here’s my take… it doesn’t matter.
Look, when the VIX is in the 30s and the market is over 1% a day, you’re going to have very tightly correlated markets.
But right now, the VIX is just cracking the 20s and the VVIX has made new lows this year:
If volatility continues to cool off, then you’re going to have many more single stock opportunities.
In fact, you’re going to have A LOT more in all likelihood.
And the best way to capitalize on them and pull serious money out of the markets…