Bitcoin tested the $110,000 resistance, while Ethereum approached the 100-day EMA hurdle. The choice of Sanae Takaichi as Japan’s new Prime Minister helped stabilize the Japanese Yen.

Brokers’ Rankings For 2025

The brokers’ rankings for 2025 showcase the best options for trading various currencies and assets like Forex, CFDs, Gold, and brokers offering Islamic and swap-free accounts. It’s important to note that these forward-looking statements come with risks and uncertainties, meaning there are no guarantees regarding their accuracy or timing. This information is not investment advice, and individual investors assume all risks. The S&P 500 is showing weakness below the 6,785 mark, with each rally attempt being quickly sold off. We see signs of forced selling, suggesting that some big players may be in trouble. This price action points to the possibility of lower levels in the coming weeks. What’s surprising is the calmness in the options market, where the VIX does not reflect any significant fear. This week, the VIX is around 16, a level we haven’t seen since before the market instability in late 2024. This low volatility makes protective put options relatively cheap, presenting a clear opportunity. We are preparing for the upcoming US CPI data, which could disrupt this calm. Last month, on September 15th, the CPI came in higher than expected at 4.1%, which caused market tumbles. Another high inflation reading could push the Federal Reserve to adopt a more aggressive stance, waking up volatility buyers.

Credit Markets And Energy Prices

Given this situation, it’s wise to consider buying some downside protection while it’s still affordable. Purchasing S&P 500 or SPY put options for late November or December provides a defined-risk opportunity for a potential market drop. This strategy serves as a hedge against overwhelming selling pressure. We’re also closely monitoring credit markets, as they often signal movements in stocks. Recently, the spread on high-yield corporate debt widened by about 15 basis points, signaling a decreased risk appetite. This trend resembles early-warning signs seen before the market correction in the first quarter of 2024. Compounding the pressure are rising energy prices, with WTI crude exceeding $95 per barrel due to new US sanctions. This raises inflation concerns in an already sensitive market. Geopolitical tensions, particularly between the US and Russia, also add to this fragile environment. The strength of gold, remaining above $4,100, indicates that some investors are seeking safety. Meanwhile, weakness in currencies like the British Pound shows growing worries about global economic disparities. These factors support a cautious approach and suggest that holding some downside protection is wise. Create your live VT Markets account and start trading now.

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