As trading hours progress, risk appetite declines and the S&P 500’s early gains shrink significantly.

    by VT Markets
    /
    Sep 10, 2025
    **We’re Seeing A Clear Shift In Sentiment** The VIX index has risen above 20 for the first time in two months. Betting on more market fluctuations seems smart. We recommend buying VIX call options or futures to profit from the growing fear. This strategy works well, especially if the ongoing political issues, highlighted by the recent shooting, keep creating uncertainty. The S&P 500 is testing its 50-day moving average, a crucial support level that might break. We are considering buying put options on the SPY ETF to protect our portfolios from a possible drop. If the index falls below this level, it could lead to a quicker sell-off. **The Reversal In Oracle** Oracle’s drop from a 43% gain to 36% after its strong earnings report indicates that traders are eager to take profits. This is a warning sign for other popular tech stocks that have seen significant gains this year. We see this as a reason to be careful about overly enthusiastic reactions to individual stocks. This situation feels similar to the months leading up to the 2020 U.S. election when the market was highly volatile due to political division. Back then, the market stayed anxious for a long time. If history repeats itself, this recent event might cause weeks of market unease, rather than just a few days. The U.S. dollar is showing a trend toward safety, with the Dollar Index (DXY) reaching a two-month high above 107. We believe this strength will continue, especially against currencies linked to commodities, like the Australian and Canadian dollars. Shorting the Aussie dollar against the U.S. dollar using futures or options looks like a strong trade right now. Create your live VT Markets account and start trading now.

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