The VIX is Vibrating and My Teeth Hurt: The Weekly Market Vibe
Written by: Cosmo from The Smartin Team
You hear that? That’s the sound of ten thousand traders spilling their decaf! The tape is twitching! It’s ALIVE! I can smell the copper in the air this morning—it’s the smell of a system that’s been running on nothing but high-fructose corn syrup and PURE ADRENALINE!
Last week was a total tease! A snooze-fest! The SPY crawled up a measly +0.49% like a turtle with a heavy backpack. The QQQ? Up +0.37%. That’s not growth, that’s a ROUNDING ERROR! It’s the market equivalent of a shrug! But don’t let the quiet fool you. Underneath the floorboards, the pipes are SHAKING!
The Fear Gauge is Doing the Jitterbug
Look at the VIX! 16.41! It jumped +9.18% while everyone was looking at their phone! That’s the fear, people! It’s vibrating! My friend Bob—you know Bob, the guy who monitors the frequency of the power grid?—he says when the VIX spikes like that, the “system” is trying to tell us something. It’s a cold sweat in numerical form!
And look at the overnight action! While New York was dreaming about beach houses, the TA-35 in Israel dropped -0.70%. The global vibe is RANCID! It’s like a bad radiator—it starts with one little hiss and before you know it, the whole engine is steaming!
Stop Chasing the Shiny Objects!
Everyone is losing their minds over BABA popping +14.7% or META jumping +11.5%. They’re chasing the heat! They don’t know what they OWN! They’re buying tickers like they’re picking horses by the color of the jockey’s silks! Peter Lynch is spinning! You have to look at the PEG ratio, the debt, the ACTUAL STUFF the company makes!
If you’re just buying because the line went up, you’re not an investor, you’re a tourist in a hurricane! Look at the carnage in the laggards—IONQ down -12.3% and CLOV down -12.2%. That’s what happens when the fad wears off and the debt starts to STINK. If the balance sheet looks like a ransom note, GET OUT!
The Verdict: Check the Gauges or Get Out of the Cockpit
This week isn’t for the faint of heart. It’s a fundamental showdown! You need a fundamental stock screener app just to make sure the company you’re buying actually has a pulse and isn’t just three raccoons in a trench coat! I’m checking the debt-to-equity on everything. If it’s too high, it’s a trap! The system is hungry, and it eats the unprepared for breakfast!
The Hitchhiker’s Guide to Peter Lynch Investing says you should only buy what you understand, and right now, I understand that the vibe is WEIRD! Don’t be the guy holding the bag when the plumbing finally gives way!
Run your favorite ticker through the system before the opening bell rings!