I have been hearing some very interesting talks on volatility in various pod casts that I listen to. We have just seen the VIX make a record low to a 9 handle. One thing I have been harping on is to watch this short VIX crowd. If anyone is going to get nervous about any downside in the markets it will be the VIX shorts all heading for the exit. Some experts have been saying that the volatility ETF’s could blow up and close up shop very easily, should there be a sudden move higher in the VIX. We know that the short trade is massively over crowded. Watch closely.
This podcast is one that I listened to recently. It explains the main points very well. – Adventures in Finance Ep 46 – What Lies Beyond? Big Themes for 2018 Part I: Volatility
VIX daily down to a 9 handle.
SVXY weekly watch for any sign of reversal like in August 2017.
VXX is well below the daily kumo. If VXX gets above the daily kumo we can be fairly sure of some major downside in stocks. Just something to watch.