Key points:

• Risk On/Off Indicator plunges >25% in 3 sessions; Market Environment drops to an "unhealthy" 3.
• VIX spikes 39.7% in one day - historically a strong contrarian buy signal (91.7% win rate), but drawdowns can be severe.
• Volatility events like this have been buyable (72% win rate at 3 months), but the path is rough with 15%+ drawdowns common.
• May payrolls beat by 87k - Nasdaq rallies short-term, then fades; gold catches a bid over 1-4 weeks.
• Both PPI (+9.6%) and CPI (+4.18%) exit "normal" ranges; JK Inflation Model flips to "unfavorable" for stocks.
• Gold drops 24% from $5,600 peak; miner panic breadth at top 5% since 1993 - regime detector, not timing signal.
• Healthcare at multi-decade relative lows, but insider buying surges to a 15-year high - a historically bullish contrarian setup.

House view:

• Stocks:
  • Short-term: Modestly Bullish. U.S. equities staged a dramatic V-shaped reversal this week. Early losses were driven by escalating geopolitical tensions and unexpectedly strong economic data, while improving Middle East peace prospects triggered large-scale short covering an