The VIX Divergence That Signals a Tradable Bottom

Don here...

The S&P made a new low in the overnight session.

The VIX cash index did not take out its March 9th high.

That divergence has Gianni Di Poce's attention. Mac Holbrook's too.

Mac entered long positions this morning and hedged them with VIX calls that got crushed overnight.

That combination gives him upside exposure while protecting against another flush.

In today's Live Trading Room session replay, you'll see:

Why Mac targets S&P 7,100 to 7,400 by mid-to-late summer. Sentiment is extreme bearish. Positioning is extreme bearish. Breadth has washed out. Mac walked through the cyclical setup and what confirmation he needs over the next few days to stay long.
The anchored VWAP and volume profile levels Mac uses to identify entries. JP Morgan bounced right off a key level. Dell is holding at highs. Mac showed exactly where supply and demand are sitting across his watch list.
Why Nvidia not making a new low changes everything. The market made a new low today. The world's biggest company did not. If Nvidia breaks out to the upside, the math says it carries the index with it.
The false breakdown setup on the November lows. Gianni's line in the sand was the November low in the S&P. The break below it got bought right back. From false moves come fast moves. He walked through what that pattern means for positioning this week.

Mac is sitting 25 to 40% cash depending on the portfolio.

He is scaling into longs in Microsoft, Palantir, Netflix, Cloudflare, and JP Morgan.

All of them are showing relative strength by holding higher lows while the indices make new ones.

The next week or two could make or break the year. Gianni and Mac showed you exactly which levels to watch and which stocks are telling the real story underneath the headlines.

→ Watch Mac and Gianni break down the VIX divergence, the false breakdown setup, and the exact stocks positioned to lead the next move

To your success,

Don Kaufman
Chief Market Strategist, TheoTRADE

P.S. This is your last chance. Tomorrow at 1PM EST, I deliver my final 0DTE webinar. You may think you know how to trade 0DTE. But I promise you, my strategy is unlike anything you've encountered. Click Here to add the event to your calendar.

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