Benzinga's PreMarket Prep co-host Dennis Dick, CFA, gives his thoughts on how to navigate the current market conditions. Premarket Prep is the #1 go-to source for everything you need to know before the market opens! Join our expert hosts as they break down the latest market trends, analyze key indicators, and provide actionable insights to help you navigate the trading day ahead. Watch every market day live on YouTube from 8AM ET.
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00:00When the VIX goes up, write this down.
00:02If you can learn anything from this show, write this down.
00:04When the VIX goes up, over 30.
00:07When the VIX moves up, over 30.
00:10Individual news, obviously earnings reports matter, but little stuff like insider buys,
00:15upgrades, downgrades, that stuff takes a backseat.
00:18The macros are driving the bus.
00:20Most of the time, it's the micros driving the bus.
00:23And obviously, you got an earnings report, it's going to drive the bus too.
00:26But what big time drives the bus right now is the macros.
00:30And so if you're thinking, oh, I'm going to buy this stock because it's got an insider buy,
00:34and then the Japan sells off and the macros sell off, like why am I down on my stock?
00:39Or my stock was upgraded, why is it down?
00:41Stuff doesn't matter nearly as much when the VIX is this high.
00:45So you have to adjust your trading styles.
00:47You have to adjust those algos.
00:48And people who are just buying randomly on stock splits, we're not a month ago.
00:52If SMCI reports a 10-for-1 stock split a month ago, it's up $100 and everybody's happy.
00:57But we're not in Kansas anymore, we're going to sell the RIP market.
01:00And we're in a market that really is just, well, take the profits, but
01:05just it's got a lot of signs of a bear market, to be honest with you.
01:10Now, I know we're ripping here today, but the moves are violent in both directions.
01:16So it's a tough market right now.