Assessing Market Reaction to Retail Sales and VIX Spikes

The stock market overreacted to strong retail sales data. Unnecessarily so.

I believe that the Fed won't start cutting rates until there's a significant drop in stocks, regardless of the economic data coming in.

The good news is that the current downturn is not the beginning of a major collapse. The economy is strong, and there's still plenty of liquidity in the system and markets.

However, the spike in the VIX is concerning. The correction might extend over the next 2-3 weeks. Thus, tactically buying some SOXS seems prudent.