Options market doesn't show worries about govt. shutdown or a rally pause, says KKM's Jeff Kilburg

Market Volatility & Investor Sentiment - The options market, as indicated by the VIX, suggests a lack of concern regarding potential government shutdowns or a pause in the market rally [2] - KKM Financial anticipates increased market volatility at the end of the month and quarter [1][4] - A significant amount of cash, approximately $8 trillion, is sitting on the sidelines, potentially fueling a market chase at month-end [4] - The melting VIX and underinvested shorts are expected to push the market higher, regardless of high valuations [15] Economic Factors & Fed Policy - The upward revision of GDP is viewed positively [2] - Inflation numbers present a conundrum for the Federal Reserve, which is now shifting its focus more towards unemployment [3] - The market rally can resume, with the S&P 500 having risen nearly 35% from its April 8th low of 4802 [3] - An anticipated easing cycle with one or two more rate cuts by the end of the year is expected to power US equities [14] Sector Rotation & Emerging Technologies - A rotation is occurring within the "Magnificent Seven" stocks, with profit-taking in names like Nvidia and Microsoft, and gains in names like Google [6][7] - Quantum computing, particularly IBM's advancements, is expected to be a significant theme in Q4 and 2026, potentially revolutionizing crypto and electronic transactions [8][9][10] - IBM's quantum computing test case with HSBC has shown a nearly 34% improvement on their bond trading desk [11]