Below is a brief excerpt transcribed from Friday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.
Isn’t it amazing to watch people’s confidence in stocks go up when you get a 3 handle on that VIX?
However if the 3 handle is above 31, it doesn’t equate to the new bull market. By the way, the real bull market is in Gold, Treasuries, and the U.S. Dollar.
But that notwithstanding, Volatility has immediate term upside to 58.46.
That’s the vol of Vol or simply the risk range of volatility. Think about it that way.
Implied vol got all the way to a -60% implied volatility discount yesterday. As you know, I'm not shorting SPYs because that’s a crowded one. I prefer to short the Russell 2000 (IWM).
Today I’d go with U.S. Retailers (XRT) #1 and Russell 2000 #2. If you want to short them right out at the open I’d be fine with that.
