Editor's Note: Below is a brief excerpt and chart from today's Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look.
It was only 1-week ago today that the Nasdaq Composite Index:
A) Had the top-end of the @Hedgeye Risk Range at 6918 … and
B) An implied volatility DISCOUNT (vs. 30-day realized) of -4%
Within that setup, youge FAANG components like Amazon (AMZN) and Google (GOOGL) had implied volatility DISCOUNTS of -50% and -18%, respectively. If you don’t know what those mean, let me make it really simple – they combine complacency with capitulation!
