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The market just finished a week that should have destroyed portfolios. Instead, the S&P closed higher.

That's not normal. And it's definitely not safe.

We just witnessed backwardation at market all-time highs. I've been watching volatility futures since 2004. I've seen every major crisis. Financial collapse, COVID, April tariffs.

I've never seen backwardation like this when markets are sitting at records.

The VIX spiked to 29 overnight. The VVIX pushed past 120. Both indicators screaming imminent danger while the S&P kissed new highs. That combination doesn't happen unless something serious is brewing beneath the surface.

Here's what the volatility futures are telling us right now:

• 33-day vol futures basically even with 61-day futures
• Risk in the next month equals risk in the next two months
• Markets are pricing the world blowing up in real-time
• Yet indexes finished the week up over 100 points

The regional bank situation looked contained. Jefferies actually finished the week higher after getting crushed. KRE stayed inside its expected move despite the chaos.

So it's not the banks the market is worried about.

AI stocks remain completely unscathed. Google hit an all-time closing high during this volatility storm. Apple AAPL and Broadcom AVGO finished at the upper edge of their expected moves. Nvidia NVDA looks like it had a completely normal week.

Yet Nvidia's implied volatility is elevated to levels we typically only see around earnings. No earnings scheduled. Just elevated risk pricing.

Bitcoin cracked below 110 just like I called Wednesday. It's now down 18% from highs. That's near bear market territory for crypto.

Gold is experiencing a massive gamma squeeze. GLD traded 2 million option contracts today. A few weeks ago it was doing 40,000 on a big day. Now institutions are buying puts at three times normal volume. The unwind has started.

We came into this week with a $197 expected move. Next week we're still looking at $143. Normal weeks have been running $85-$92.

Volatility isn't backing down. It's telling us the danger is still very real.

The two-sided trade is alive and well. But I'm not going home long this weekend. Not when backwardation is this extreme at all-time highs.

Video Length: 00:23:35

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