Range Bound 🔘

Equities are grinding higher on the surface while the underlying setup quietly tightens the screws on valuations. The trailing P/E (price-to-earnings ratio) sits at the 90th percentile of 240 months of history — a level that has rarely been sustained without either a sharp earnings acceleration or a painful multiple reset. The VIX (a market fear gauge) at 18.21 keeps options affordable, making protective puts the right hedge tool right now. Core PCE inflation at 3.4% gives the Fed no cover to cut rates, and the 10-year yield has crept up 3 basis points over the past ten sessions. Own Healthcare and Consumer Staples where today's rotation is already voting with real money, and buy puts on any tech exposure where AI execution risk is unpriced.