Friday selloff setup: the cleaner play was to let bears press all day, then look for a last-minute buy near the lows. This end-of-day dip-buying tactic has worked “more often than not,” but the next test still depends on follow-through. 1
📉 Volatility & Long-Entry Zones
$VIX has two major upside gaps at 25.78 and 30.61. If volatility rips into those levels next week, that could become a buy-the-panic zone for going long stocks, or at least for selling CSPs. 2
🧯 Risk Management After a Red Tape
The selloff was one of the most intense down days in a while. Swing traders and long-term holders both took damage, but the move was “well overdue.” The real edge was having good habits before the drawdown hit, not trying to fix risk after the tape already broke. 3
🛢️ Macro & Geopolitical Risk
Over-optimism looks dangerous here. Spot exposure was cut because the policy toolbox looks short of ammo. The risk chain is straightforward: attacking Iran could block the Strait, oil could spike, and inflation could blow out. 4