Hosts Tom and Tony welcomed researcher Kai to discuss another strong week where all four major indices gained 1.8-3.6%, with S&P 500 and NASDAQ pushing to new highs despite the approaching July 9th tariff deadline. The team emphasized they don't scale positions based on known events, instead focusing on volatility opportunities, noting that while VIX trades near long-term averages around 17, the IV-HV spread remains wide at 7 points compared to the 3.5-point historical average. Entertainment and gambling stocks led gains (LVS up 10%+) while pharmaceutical companies dominated losers, suggesting potential market rotation. Tom noted this rotation pattern often signals markets getting "long in the tooth" and ready for a breather, while the unusually wide IV-HV spread indicates implied volatility still overstating realized volatility despite the low absolute levels.