guys apparently everyone on Wallstreet has forgotten how to do basic math. just hear me out alright...

So yesterday SPX closed at 7706 with a PE ratio of 20.3 (that 20.5 on chart is so wrong)

https://preview.redd.it/8c16lbf24grh1.png?width=900&format=png&auto=webp&s=2b1b75e209fff3d7eec8912ddd8673a1b032a95e

The Us treasury bond i.e. the benchmark of everything around us (from house to car to personal loan) has entered what you call a price discovery mode where the sky is only the limit. Just kidding obv 5.25% (from the pre GFC era) or 5.50% (from dotcom era) are going to be the key resistance. Currently it's sitting at 5.14%.

https://preview.redd.it/y94n6t8b4grh1.png?width=1296&format=png&auto=webp&s=7631671d538723e0d16e25658facf8885bb8c273

So even with a 0 ERP, the PE ratio of the index has to be 19.45

meaning SPX this week should be trading at 7483/7400 (-4% drop by JPM collar expiration i.e. tuesday next week) provided 10yr stay here at these levels.

https://preview.redd.it/vytb3mv15grh1.png?width=1088&format=png&auto=webp&s=cd99d95f89e7b2e5bdeb0686c2bfade33b26d350

Even the chart of Oil is not looking great at these levels.

So what i'm doing is buying UVIX a 2x levered vix etf as these circumstances clearly warrant a VIX 30+. Meaning a 2x rise in vol etfs and around 3x rise in UVIX is clearly not out of the question. The move index has finally started to pick up suggesting vol will follow soon.

https://preview.redd.it/vma1yj5r5grh1.png?width=1080&format=png&auto=webp&s=71adf11ec624fb9254d3327ed5ac7a8e13ba6438

I know i'm down rn but i think i could recover if UVIX hits 95 price target.

thank you!

have a wonderful week
p.s. found this hidden gem "Guilty crown" in scifi genre that you guys should checkout