Markets Are Closed, But This Wild Ride Isn’t Over

Don’t get comfortable. Big moves are coming this week

Today is Memorial Day, and the markets are closed.

But don't let that fool you into thinking it's time to relax.

Last week was a rollercoaster, and we’ve got just four trading days ahead. Let’s break down the action and see what’s in store.

If you missed Monday and Tuesday last week, you didn't miss much. The market was dead—no volume, no action. But things heated up on Wednesday when the Fed released its minutes.

The big news? The Fed isn't ready to cut rates anytime soon. This shook things up a bit, but the real fireworks came on Thursday.

Nvidia stole the show, turning the market into a madhouse. While the S&P 500 ended the week unchanged, Nvidia’s wild swing kept things interesting. Nvidia versus the world—and Nvidia won.

Now, here's the critical part: Even though the S&P 500 didn't move much, there’s a huge divergence across different indexes. The NASDAQ 100 hit the upper edge of its expected move, while the Dow? It got its clock cleaned.

This divergence is dangerous. It shows the market is on shaky ground. Big tech names like Microsoft and Apple are holding the S&P together, but they’re not enough. Financials and energy sectors got hammered. If it weren't for Nvidia, last week could've been a bloodbath.

So, what’s next? The market is reacting negatively to good data because it means no rate cuts. High interest rates aren't hurting big tech yet, but they will. If the S&P drops 20-30%, it’ll drag everything down with it.

This week, keep your eyes on volatility. The VIX dropped back to 12, but that’s misleading. With the market so unstable, we could see a spike in volatility soon.

I wouldn't be surprised if we see '50 Cent' step in and place a new large VIX Trade.

Good trading, and remember – rent's due.

Josh Belanger