VIX This is the "next best trade" appearing on my radar, for a couple of very good reasons. First, technically VIX is way oversold and due for a bounce, but said bounce can easily turn into a spike well above 30, just look at the chart. Secondly, the underlying political assumption is that the "debt ceiling crisis" will as always, be settled without default. This is something that can just as easily morph into that black swan event that, "no one saw coming." Our next foray into VIX calls will be triggered by a move above 20. That in and of itself targets 30+ before June 21st VIX option expiration. Botton Line: Nothing to do now, but if VIX starts moving up, especially with momentum, an up blue arrow Buy Signal and close above 20, we will be buying the Jun 21st $25C (1.20-1.25). Minimum expectation would then be a move to VIX $30 for a 4X return on the calls, however a move to $35 would be a 8X return and $40 would be a 12X return. VIX will eventually close above $20, if it takes too long, we will be looking at Sep 20th VIX expiration for a longer term play. In a perfect world, we will be in VIX calls in both Jun and Sep expirations coming out of Memorial Day weekend. If only the world were indeed, perfect. ---------------- McCarthy Says Debt Ceiling Talks 'Not In A Good Place' As Yellen Warns 'Time Is Running Out' House Speaker Kevin McCarthy (R-CA) said on Monday that negotiations over the debt limit with Democrats and President Joe Biden are "not in a good place," and that Biden had delayed talks for 100 days. "We only have so many days left," McCarthy said on Monday - reiterating today that there had been 'no progress' in the talks. "The president decided to wait 100 days before he would negotiate. He treated this the same way he treated the border [crisis]—he wanted to ignore the problem." McCarthy and Biden are scheduled to meet at 3pm ET on Tuesday [editors note: last hour of trading]. IWM - Projected -24% decline
