The question of what the FED will or will not do is irrelevant according to my work.  The market is ready to sell-off and the catalyst could be any flavor of the day from the FED cutting too little or too much.  In fact, it could even be some totally unrelated topic. 

Bottom-line…the volatility model says volatility will spike today into 10:35 and then continue to rip to the upside into 12-18.  THIS IS A VERY POWERFUL SET-UP, so look for a nasty plunge in the stock market with MUCH higher premiums on the options that are due to expire this Friday!

According to the BAM model, today should mark the start of an upside explosion in volatility and another wave of selling that will continue through the end of this year.

The model has been spot-on this entire year and from a business perspective there’s certainly no reason for me to remain bearish with the market back at the 2002 lows–I could simply pack it in a claim better performance than my competitors–but that would be a disservice to subscribers and it doesn’t reflect a discipline of strictly following the BAM model.

No change–INDU 6426 target this month and if that level breaks they could trade to 3971 into mid February.

Full report coming soon