The market faces multiple catalysts this week, including Nvidia’s earnings report on Wednesday and Canada’s retaliation date set for September 8. Treasury yields are at critical levels, with the 10-year reaching 4.73%, the highest of the post-GFC era. SPY options appear cheap with 30-day at-the-money implied volatility at approximately 12.6%, making the SPY October 775 calls attractive to capture these catalysts without taking on excessive risk. Memory and storage stocks, despite impressive year-to-date gains, are showing weakness with pullbacks of 20 to 40% from their highs, suggesting the big gains may have already been made in that sector.
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