CHART OF THE DAY: Is Volatility Back? #Yep

02/20/18 07:44AM EST

Editor's Note: Below is an excerpt from today's Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look.

My quantitative signaling process is suggesting something might be changing out there in volatility space. Nothing concerns me more than a Phase Transition in trending volatility.

...Even though US Equity Volatility (VIX) got smoked for a -33% correction last week, the implied volatility DISCOUNTS in big things like the NASDAQ and SP500 got more and more negative into days 5 and 6 of the rally. That’s not good.

..If or when I stop getting these sell-the-rip signals, I’ll be the first to let you know. For now though, US Equity Volatility is back to signaling Bullish TREND @Hedgeye.

CHART OF THE DAY: Is Volatility Back? #Yep - 02.20.18 EL Chart

CHART OF THE DAY: Is Volatility Back? #Yep - early look

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