Market Volatility and Trading Strategy Update
Traders discussed today's market rally, with the S&P 500 approaching the 5,690 level after yesterday's painful trading session. The hosts analyzed FX market conditions following major central bank decisions, noting decreased volatility in major currency pairs like EUR/USD.
Glenn explained that despite a softer-than-expected CPI print causing initial dollar weakness, volatility remains compressed. The team established a short position in USD/JPY ahead of tonight's Bank of Japan meeting, where a rate hike is anticipated that could strengthen the yen.
The traders took profits on several positions showing 25-40% gains, including Netflix and Treasury futures. They also established a new Jade Lizard position in Nike (NKE) ahead of earnings, and discussed the misconception that zero DTE options are inherently risky when proper risk management techniques are employed.