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Volatility: How To Trade This #WickedChop

Takeaway: Trading US equity markets takes patience. I like to wait on selling equity Beta around VIX 11-11.5.

Volatility: How To Trade This #WickedChop - Volatility cartoon 09.02.2015

 

Volatility has been smashed (on the front end) alongside US Equity Volume (-26% yesterday vs. 1yr avg). There have only been 5 trading days in the last 30 with a VIX move of +/- 0.5%, but I like to wait on selling US Equity Beta around VIX 11-11.5. #Patience. #TradeTheChop

 

Speaking of Volatility...

 

#WickedChop continues w/ Oil Volatility (OVX) tracking higher (again) this morning off 34-35 support. WTI failed @Hedgeye TAIL risk resistance of $52.12 (again); our Energy Policy analyst Joe McMonigle had a very timely note up intraday yesterday saying fade the Iranian “freeze” noise. (Read McMonigle's "Oil/Iran: Sell The News!")

 

 

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Editor's Note: Here's Hedgeye CEO Keith McCullough explaining how to trade an environment in which volatility continues “shocking people to the upside.”

 


PREMIUM INSIGHT

REPLAY: About Everything | Q&A with Neil Howe - Credit Cards Lose Their Charge

REPLAY: About Everything | Q&A with Neil Howe - Credit Cards Lose Their Charge - AE thumbnail

In this complimentary edition of About Everything, Hedgeye Demography Sector Head Neil Howe discusses the future of the credit card industry. Howe breaks down the key takeaways and explains the broader implications for investors.


Daily Market Data Dump: Wednesday

Takeaway: A closer look at global macro market developments.

Editor's Note: Below are complimentary charts highlighting global equity market developments, S&P 500 sector performance, volume on U.S. stock exchanges, rates and bond spreads, key currency crosses, and commodities. It's on the house. For more information on how Hedgeye can help you better understand the markets and economy (and stay ahead of consensus) check out our array of investing products

 

CLICK TO ENLARGE

 

Daily Market Data Dump: Wednesday - equity markets 8 24

 

Daily Market Data Dump: Wednesday - sector performance 8 24

 

Daily Market Data Dump: Wednesday - volume 8 24

 

Daily Market Data Dump: Wednesday - rates and spreads 8 24

 

Daily Market Data Dump: Wednesday - currencies 8 24

 

Daily Market Data Dump: Wednesday - commodities 8 24


Hedgeye Statistics

The total percentage of successful long and short trading signals since the inception of Real-Time Alerts in August of 2008.

  • LONG SIGNALS 80.33%
  • SHORT SIGNALS 78.51%

Poll of the Day: Which Business News TV Channel Do You Trust The LEAST?

Takeaway: What do you think? Cast your vote. Let us know.

 

 


CHART OF THE DAY: Complacency At All-Time Highs?

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more. 

 

"... Looking a little deeper into how the latest all-time high in SPY has become:

  1. VOLUME: yesterday’s Total US Equity Market Volume (including dark pool) crashed -26% vs. its 1yr avg
  2. VOLATILITY: remained like a ball-under water (sub 14-15 on front month), sucking everyone back to VIX 10-11
  3. PRICE: SPY has only moved > +/- 0.5% in 5 of the last 31 trading days (will day 27 of complacency be today?)"

 

CHART OF THE DAY: Complacency At All-Time Highs? - 08.24.16 chart


Cartoon of the Day: "Rarified"

Cartoon of the Day: "Rarified" - No volume cartoon 08.23.2016

 

Total equity market volume continues to tumble on up days and rip on down days.


Early Look

daily macro intelligence

Relied upon by big institutional and individual investors across the world, this granular morning newsletter distills the latest and most vital market developments and insures that you are always in the know.

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