CHART OF THE DAY: Stock Market = Bullish Complacency & Bearish Capitulation

Call it complacency by the bulls and/or capitulation by the bears. It’s easy to see both AFTER the US stock market rallies towards all-time highs. Here’s another way that we’re constantly contextualizing complacency and/or capitulation:

1. As you can see in today’s Chart of The Day, we’re measuring and mapping @Hedgeye Volatility Metrics
2. Implied vs. Realized Volatility (30-day) has generally mapped towards implied volatility DISCOUNTS post equity market ramps
3. SP500, NASDAQ, and Russell 2000 all currently have implied vol DISCOUNTS of -4% to -13%