CHART OF THE DAY: Crazy Complacency

Think about the crazy complacency (by the bulls) and capitulation (by the bears) embedded in that fact-based picture of FOMO. As you can see in today’s Chart of The Day, only 1-month ago today, post SPY getting body slammed in the 1^st week of AUG:

1. Implied Volatility on SPY was trading at a +71% PREMIUM to what had been realized in the month of JULY (i.e. the peak)
2. Implied Volatility on Tech (XLK) was trading at a +63% PREMIUM to what had been realized in the month of JULY (i.e. the peak)
3. Implied Volatility on SPY was trading at a +37% PREMIUM to what had been realized in the month of JULY