Stock market was battered by Irma and faces volatile week ahead.
The stock market lost ground last week with the S&P 500 (NYSEARCA:SPY) losing 0.6% for the week, the Dow (NYSEARCA:DIA) falling 0.9% and the Nasdaq (NYSEARCA:QQQ) down 1.2%.
The VIX (NYSEARCA:VXX) jumped 4.4% on Friday to close at 12.12, up 20% from September 1st.
Irma is making people nervous as it makes landfall today and North Korea remains on the radar with its missile activity.
The debt ceiling was raised, yet again, to keep the government open until December 8th.
The Holiday shortened week showed July factory orders dropping 3.3%.
The upcoming week brings some important news with August producer prices on Wednesday, consumer prices on Thursday and a big docket on Friday with August retail sales, September Empire State index, August Industrial production and September consumer sentiment.
The last word: The stock market remains vulnerable to a sharp pullback as hurricanes, missile launches, earthquakes, and slowing economic activity all add danger to significantly overvalued conditions. VIX Trader continues to seek profit with options credit spreads in VXX and SPY and awaiting new opportunities in XIV which will likely come on the short side as volatility increases. VIX Trader remains in “yellow flag” mode for equities.