Michael Kramer Mott Capital Management

In this video, we'll take a look at the November CPI report and see if it will make or break the stock market rally.

Stocks managed to rise today, as the pinning of volatility resulted in the VIX falling below 12 for part of the day. Unfortunately, with options expiring this Friday and the VIX Option expiring next week, the mechanical forces in the market are at play right now.

The shocks continued to roll through the markets on Thursday as the ECB and the BOE pushed back on the market expectations for rate cuts. This creates more questions than answers as to why the Fed decided to show its hand now. Unfortunately, we will have to wait ten more years to find out what happened because that is when the historical transcripts will be released and all the details of what took place, but we can speculate for now.

The FOMC dot plot caught everyone off guard, and now the market has gone all in on rate cuts, which may backfire.

Does the Fed fear a rising employment rate? You have to wonder why they are showing their cards at this point in the game. More By This Author:

The market surged this past week following a confusing Fed meeting that created more questions than answers. The Fed tried to go into damage control on Friday by sending out John Williams, Raphael Bostic, and Austan Goolsbee. None did much on the surface to improve the situation Jay Powell left behind following the Wednesday press conference.

Today, we observed a rare occurrence where the RSI traded above 80, and the S&P 500 also traded above its upper Bollinger Band. This seldom happens, making it a highly unusual and rare condition to find both indicators aligning simultaneously.

Stocks rallied again, achieving even more extended levels, with the S&P 500 RSI rising to just shy of 82 while remaining above the oper Bollinger band. Again, this is reaching extreme overbought and stretched levels, and the best opportunity to pop this will come tomorrow, with

Today, we'll quickly review the recent market developments, focusing on high-yield spreads and their potential impact on overall markets. I'll discuss why this might lead to a resurgence of inflation in the coming months.

Join Mike as he breaks down the massive sell-off that occurred on December 20th! Discover what really happened and get insider insights into the potential turning point around VIX option expiration.