This One-Day VIX Crash Just Reset the Trap — Are You Ready for the Pending Breakdown?

Trade of the Day Wake-Up Watchlist

"When VIX drops 4 points in 24 hours, options get dirt cheap. That protection you couldn't afford when volatility was spiking? It's now 80 cents on the dollar."

Chris "CJ" Johnson, Lead Host & Senior Analyst, Monument Traders Alliance

Chris "CJ" Johnson

Publisher's Note: Missed CJ's conversation with Jon Najarian?

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Plus his exact 50% loss/double profit discipline.

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Stephen Prior, Publisher


The majority of investors aren't paying attention to what just happened, and that's going to cost them.

VIX crashed from 20 down to 16 in one day. Everyone's celebrating Trump's Greenland deal like the danger passed.

It didn't. This relief rally just reset the trap.

Earlier this week, I warned you about three signals screaming pullback. VIX hitting 20. NASDAQ momentum rolling over. Market breadth deteriorating. Those warning signs didn't disappear because of one geopolitical announcement.

But now everyone's relaxed again. VIX at 16 means nobody's paying for protection anymore. The fear trade got completely unwound overnight.

This is exactly what I was hoping for.

Here's what nobody's talking about

When VIX drops 4 points in 24 hours, options get dirt cheap. That protection you couldn't afford when volatility was spiking? It's now 80 cents on the dollar.

The smart money knows this. While retail investors are celebrating, institutions are loading up on cheap puts.

The technical damage I showed you is still there. Two of the Magnificent Seven sitting on their 20-month moving averages. NASDAQ 50-day rolling over for the first time in a year. Only two of the Mag 7 positive for 2026.

But now when we break those critical levels, it's going to catch people with zero protection.

The 610 level is still live

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My Nasdaq ETF (QQQ) warning levels haven't budged. 610 starts the real selling. 605 triggers the volatility storm that could take us down 8-18%.

When I first called these levels, traders were nervous. Some had hedges on. Now? Complacency just reset completely.

Break 610 with VIX at 16, and nobody's prepared for what comes next.

Your Action Plan

First - mark 610 on your charts. When we break it, the relief rally is over. 605 confirms we're heading into that correction I outlined. No hesitation.

Second - this VIX crash is a gift. Look at the April 610 puts in QQQ for some portfolio insurance.

Third - if you're sitting on big gains, especially in high-beta tech, use this bounce to set your stops. The same earnings concerns are coming in two weeks. The credit worries banks mentioned didn't vanish because of a Greenland framework.

Nothing worse than riding a 15-20% decline because you thought one relief rally changed everything.

The storm I warned you about is still building. The market just gave you better entry points to prepare for it.

Don't waste this opportunity.

You can find more of my insights on our new YouTube Channel.

Click here to check it out.

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