MIAX Volatility Zone: NVDA Earnings & Upcoming Fed Rate Cut

welcome to volatility Zone A series where we take a quick dive into volatility from Market experts this series is brought to you by Max innovating the trading space with the spikes volatility ecosystem hello and welcome to the volatility zone I'm Joe Tay to open the week we have volatility higher to 1675 we have crucial earnings coming from in and this is happening as we're seeing a rotation out of the semiconductors out of tech back into value back into small caps today now remember at the end of the summer middle of July we were seeing this rotation in a big way uh out of the leaders of the of the market rally so far this year into some value and into some small caps uh this was as we were expecting the FED to have a big rate Cuts uh following that earnings report in July now uh remember uh that really Unwound quickly everything came down together and really the sell-off in the 70s kind of was a leading indicator the market was going to have a flush out so we'll be watching that carefully Nvidia earnings are going to be so crucial for me uh for a lot of reasons but that's just the tip of the iceberg now uh the FED last week in Jackson Hall said we're going to be cutting rates and the market already knew that but I think the Market's comfortable the W the why they're cutting rates is not necessarily because jobs are falling off a cliff but because inflation is coming down and inflation is no longer tied to jobs so they kind of okay with getting some more jobs out there because they don't think that's going to cause more inflation hopefully that turns out to be right and the market really loved that sentiment now but if you go back in time uh there's a couple of previous rate cut Cycles both actually coincidentally started in September after Jackson hle to go back to 2007 that's when the FED started cutting rates ahead of the Great Recession uh that did not turn out so good for the market the economy really was falling off a cliff when that happened uh so that's one possibility for when the FED Cuts rates if also if you go back to 1998 the FED cut rates then people a lot of people forget about that uh we were in the middle of a tech boom and that kind of just fueled things higher uh as as the FED cut rates so we had you know the Russian uh crisis with some of their Market blowing up and uh you know decided to cut rates and boy uh the market took off in a big way so which story are we going to get we going to get 98 uh where the tech uh fueled the rally uh higher into new highs into a bubble or are we going to have 2007 where the FED popped the housing bubble and everything came down quickly maybe it's not going to be either of those maybe be something in between but there's two options of what happens when the FED Cuts rates I'm Joe T this is the volatility Zone