Vol completed the grind towards the "Capitulation Waters" as widely anticipated:
We are now tracking the response as cascading takes place. Escalation in range breakouts look likely, I think from here Vix losses are to be limited as market focus shifts back to risk events such as Brexit.I favour tactical long Vol as investors are likely to starting hedging to their bond and equity portfolios as we approach a key Fed.
For those tracking CFTC reports you will notice non-commercial traders net short positions grew approx 171,000 contracts. This should be sending alarm bells as anything above 150,000 contracts is at extreme levels! Those following the Vix updates since the previous Fed will remember this +40% leg we traded which opened the gates for massive moves in the FX board:
US-China noise, Brexit headlines and Turkish operation in Syria are the prelude going into Fed and will make the environment tricky with BOJ and BOC also on the menu.
Thanks for keeping the likes coming...Jump in with your ideas and comments on VIX and VVIX so that we can open the conversation for Fed for all to benefit from.
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