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.
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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. |
