Earnings Season Arrives with Stocks Priced for Good News — Protect Accordingly
Hold the Hedges. Stocks look expensive by history, and that alone warrants caution.
October 27, 2026 at 6:00 PM EDT
Justification
Stocks look expensive by history, and that alone warrants caution. The price-to-earnings ratio is higher than in 77 of every 100 months since 2006. The VIX, Wall Street's fear gauge, sits at 17.5 — below 20, which makes protective put options relatively cheap to buy right now. The 10-year Treasury yield holds at 5.0%, keeping pressure on valuations. Buy protective puts on broad index exposure before earnings season sharpens the risk.
Since the Last Issue
- S&P 500 moved from 7,732.6 to 7,722.6, a decline of 10 points since the prior issue
- RSI, a momentum gauge, eased from 52.1 to 51.1 since the prior issue
📡 Today's Opportunity Radar: JETS · SMH · XBI. Full ideas in the Opportunity Radar section below.
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