3 Bull Trap Charts We Are Watching

Hope for the best, prepare for the worst

The crowd is bullish and most are pushing the upside melt up narrative. Stress seen through the volatility lens stays elevated as we approach the elections. Maybe we see a post elections FOMO melt up, but the prudent investor should also prepare for a possible downside scenario, purely from a risk management point of view. Chasing VIX hedges is expensive. We find simple index put spreads more attractive given how volatility and skew is trading.