The Relief Trade: Midterms Deliver Certainty, Markets Deliver Four All-Time Highs by John Salama, CMT

Wednesday’s midterm sweep delivers a decisive relief trade: 4 simultaneous all-time highs in XLF, XLP, XLV, and VTV as domestic cyclicals ripped, while crude collapsed 9% and VXX cratered 9% as the Iran war risk premium liquidated overnight. The vol surface tells the nuanced story; IV Rank at 19.9% with ATM IV just above realized means the market is pricing calm, not complacency.A hand putting a ballot in a box with the American flag in the background by nanskyblack via Adobe Stock