Stocks Week Ahead: Is the US Stock Market's Bull Run Finally Over?

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Stocks Analysis by Michael Kramer covering: USD/JPY, S&P 500, Hang Seng, Microsoft Corporation. Read Michael Kramer's latest article on Investing.com

. The yuan’s depreciation is attributed to China’s deteriorating economic conditions. In contrast, the yen’s depreciation arises from the Bank of Japan’s maintained accommodative monetary policy, contributing to a broader interest rate differential.

Once Apple breached its trend line after its earnings announcement, it signified a substantial shift in the dynamics of the short volatility trade. The breakdown of the trend line likely marked a turning point in the viability of the trade. It is conceivable that Apple’s trajectory could lead to a downward movement and a retest of the breakout from the multi-year trend line, with potential retracement toward the gap at approximately $166.

The options market demonstrates a bias toward the upside for Nvidia. For instance, the implied volatility of the August 25 $480 calls stands at 101.14, while the $385 puts carry an implied volatility of 96.34. With the stock closing at $433, selecting a call and putting it equidistant to Friday’s closing price takes advantage of this skew in favor of calls.

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