It's beginning to feel more and more like last week's volatility event was just a blip on the radar of a bull market. Great!

And if that's the case, then we'll get rewarded for positioning in the next set of leaders that carry the market higher. Rotation, baby!

So with this in mind, we're going to go after a potential short-squeeze candidate today.

When the storm is upon us, it's too late to purchase hurricane insurance. Nobody will sell it to you. Of if they will, the prices will be obscene.

Last Monday, when the VIX printed a 65 -- it was too late to buy downside protection. If you did, you were asking for your face to be ripped off. And it likely was.

Now that the dust has settled a bit, volatility has abated significantly, and the relative winners and loses sorted themselves out, we're seeing some good setups to position ourselves for any additional downside action.

Additionally, it offers me a good chance to balance out some of the risks I still have on the books in my long positions.

It's fashionable in certain circles to talk about having a Canadian escape plan if shit gets too weird here in the United States.

I'm not one of those. Though I love Canada, having grown up across the border in Buffalo, NY.

There were many times in my younger days, while spending a day across the border, where I'd find myself short on cash and I'd have to hit an ATM to get some loonies! And most often, those ATMs were run by CIBC.

So maybe I should attempt to earn back some of those ATM fees (plus interest!).

The stock market likely has a couple of aftershocks left in it. But if the worst is over, I have to believe this is a great opportunity to buy the dip in some names that will be beneficiaries of the AI boom.

And there are few bigger and well-positioned names than Microsoft.

This market environment still demands that we define our risks and we're going to leverage elevated volatility in a way you might not expect to express our bet.

Volatility is blowing out for the second day in a row.

I'll cut to the chase. This is a good time to sell defined-risk, delta-neutral options credit spreads.

We're going to do it again today.

VIX is near its highest level of the year and this is being reflected in options premiums nearly across the board.

It's also earnings season, so we want to be careful not to get caught in any potential earnings-driven landmines.

With this in mind, I've got a big cap name that has already reported earnings, is trading in a range, and is still exhibiting elevated options premiums -- the perfect recipe for a delta neutral options trade.

In today's Flow Show, Steve and I put our heads together to find a good trade to take advantage of elevated options premiums in a big-cap name that may have seen the worst of the selling and is now may be putting in a pivot.

That name is Amazon $AMZN and here's the chart where it stands right now:

Another man's trash is another man's treasure.

And that certainly is true for Republic Services.

As can be seen in the chart below, $RSG has certainly been winning over the long run. And with this week's earning report sending the down 5%, it feels like a great opportunity to get positioned on the dip.

The Berkshires is a wonderful place to visit. And it can often be a great place to ride out the heat of summer.

Similarly, Berkshire Hathaway $BRK/B is often a great place to ride out the heat in the market.

And given the volatility backdrop in $BRK/B options, the options market is offering to pay us to catch the turn.

Let's get after it!

While I was away, volatility had a moment. And it's still hanging at pretty high levels, especially in tech stocks.

In the Technology sector ETF $XLK, we're seeing the highest implied volatility that we've experienced all year:

And with the chart of $XLK forming a range...

...this feels like a good opportunity to play for volatility mean reversion.

Here's the Play:

In today's episode of The Flow Show, me and Steve Strazza talk about the uniquely interesting market we currently find ourselves in, and we delve into a sector that appears to be making a long overdue turn higher, and a stock within the sector that is positioned for a potentially monster breakout.

Here's the big picture setup of Viking Therapeutics $VKTX:

The All Star Charts analyst team continues to believe that the industrial sector will be one of the leading areas to lift the market higher as sector rotation works its magic to keep this bull market going.

And the chart of Caterpillar $CAT looks like a potential failed top in the making:

If we're right, $CAT could quickly recapture all-time highs north of $382 per share and then the sky's the limit from there.