CHART OF THE DAY: #Trending Volatility Breakouts

01/24/22 08:01AM EST

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. 

As I also explained last week, the probability of a TAIL Risk Event (i.e. stock market crashes) was rising alongside the aforementioned TRENDING volatility breakouts in both the Russell and NASDAQ:

A) #RussVol (RVX) closed the week in the Bad-Word-Volatility Bucket at 36.25
B) #NazVol (VXN) closed the week in the Bad-Word-Volatility Bucket at 34.06

And front-month SP500 Volatility is now signaling that the probability is rising for a VIX breakout > 30. Will the new puffer fish Fed perpetuate a TRENDING breakout in VIX? The Machine is daring them to play that game of chicken with markets.

CHART OF THE DAY: #Trending Volatility Breakouts - hn1

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.