In this clip from The Macro Show, Hedgeye CEO Keith McCullough warns investors about when Volatility (VIX) goes north of 30 (what he affectionately calls the f*ck bucket).
“The whole point about the three buckets of volatility is that those two other ones [Chop and F Bucket] really mess with people who have no idea what they’re doing. That’s why this year has revealed just that.”
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Editor’s Note: There are 3 Buckets of Volatility according to our Risk-Manager-In-Chief Keith McCullough: A) The Investable Bucket = VIX 9-18, where you can buy every damn dip and make money in SPY B) The Chop Bucket = VIX high teens to high 20s, where you can get chopped up if you can’t fade/trade C) The Bad Word Bucket = VIX > 30 going towards 80, where levered long dip buyers die |
