Bad News = Market Rebound? As VIX Falls, Keep Hedging?
Last weekโs U.S. non-farm payroll data once again signaled an economic slowdown, leading the market to widely expect that the Fed may cut interest rates to counteract the weakness. The market has entered a โbad news is good newsโ mode, where weak economic data is seen as a signal for Fed easingโfueling a strong rebound in U.S. stocks, led by chip and tech stocks.
After the VIX surged 20% last Friday, it pulled back on Monday.
Should you continue to hedge risks?
With the market at a high level, how do you trade from here?
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