Markets are getting slammed for the second Monday in a row, this time after Donald Trump enacted tariffs against Canada, Mexico and China.
All three major indices are down big, and crypto also got rocked over the weekend, with Bitcoin dropping about 12% since Friday and Ethereum falling almost 30% from the highs Friday morning — though things have rebounded a bit this morning.
The VIX — aka the fear gauge — is up 20% this morning, and I expected it to go even higher, peaking out around 22 (it’s just shy of 20 this morning).
I’ve been mentioning for a while now that the correlation between Bitcoin and the stock market — particularly tech stocks — has been more and more in line, and there’s no more free lunch coming from Bitcoin.
So tariffs are dominating the news cycle this morning, but we also have a full slate of earnings on deck for this week.
Here’s my breakdown of the implied volatility for each of the biggest stocks reporting this week.
The bond market (TLT) is one area that’s still stable and holding up because it’s not affected by a trade war.
Crude oil is also on the rise because a lot of oil comes into the U.S. from Canada, but there is some resistance ahead.
Gold is also moving higher and likely a good safe haven in light of what we’re seeing, which is a lot of uncertainty…
As for the biggest Fed data coming this week, we have the ISM Manufacturing Index at 10 a.m. ET today,
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S FIVE Stocks Have ‘Wealth Windows’ Opening Today
I just finished my morning scan, and these five stocks we’re covering at 2 p.m. ET today, Feb. 3, are setting up exactly as Graham and I expected.
Their “Wealth Windows” are about to open this week — all of them at the same time.
This isn’t like our usual sessions.
When five stocks that have made the same moves at the same time, year after year, suddenly line up their windows simultaneously… well, that’s why Graham and I are both showing up today.
While we cannot promise future returns or against losses…
You’ll see the exact windows for these stocks and how to capitalize on the opportunity.