In a Sunday market preview, hosts Chris Vecchio, Nick Bautista and Josh Fabian analyze the upcoming Federal Reserve decision, where a 25-basis-point cut is 90% priced in. Despite the anticipated cut, the market shows remarkably low volatility with VIX at 15 and bond market IVR at just 2.4.
The hosts express concern about complacency heading into the Fed meeting, questioning whether stocks or bonds will make significant moves. Historical data suggests when VIX is between 10-15, simply being long the market outperforms volatility selling strategies.
Market indicators show mixed signals, with bonds breaking technical support, gold near all-time highs, and Bitcoin's recent volatility. Oil trades with low volatility (14.7 IVR) despite military positioning near Venezuela.
The hosts also note divergence within "Mag Seven" stocks, with self-financing AI companies (Google, Tesla) outperforming those in "circular spending" arrangements (Microsoft, Nvidia, Meta).