This is what a volatility feedback loop looks like

Volatility closed Friday in backwardation.

If you don't know what that means, here's the short version: the market is pricing MORE risk in the next 40 days than it is 100 days out.

That's backwards. That's fear.

And when you get vol into backwardation, you get caught in a feedback loop.

Traders who are short volatility have to sell S&P futures to hedge their positions. The S&Ps drop. That forces volatility higher. Which forces more S&P selling. Which pushes vol even higher.

It feeds on itself.

We're in that loop right now.

VIX closed at 28 — up 17% Friday. Oil blasted through $90. Expected move jumped to $229 for next week.

And now we wake up to Trump threatening "complete destruction" of certain areas in Iran. Tehran's Mehrabad airport is in flames. Israeli strikes continue. Iranian drones hit Dubai overnight.

Six US service members are being flown home today.

This isn't resolving over the weekend.

Here's what happens next: either geopolitical tensions ease and we get a relief rally Monday — or they don't, and the downside is wide open.

The S&P is hanging on by a thread. We're still only 4% off all-time highs. But that thread is fraying.

And if you're trading a small account right now without a system, you're one bad trade away from getting wiped out.

That's not hyperbole. That's math.

The 3 Trade Micro-Challenge was built for exactly this scenario.

You don't overtrade. You don't chase. You get 3 setups per week — entries, exits, risk defined — and you execute them with discipline.

When volatility spikes like this, discipline is the ONLY edge that matters.

We're running this offer through Sunday. 

Name your own price for the first month. 

Then $79/month. Cancel anytime.

I don't know when we'll run this again.

If you want to trade through what's coming without blowing up your account, this is the system.

⇒ Join the 3 Trade Micro-Challenge now — before Monday's open

To your success,

Don Kaufman