Understanding the VIX and Volatility Indicators Amid Market Uncertainty The financial media often discusses the daily movements of the VIX, or implied volatility index, and what it reveals about investor sentiment. While this index is frequently mentioned, many investors do not fully grasp what implied volatility truly represents. The purpose...
Markets Retreat Ahead of Powell's Jackson Hole Speech as Risks Rise This morning, the equity markets are pulling back after recovering to pre-dip levels, ahead of tomorrow's highly anticipated Jackson Hole speech by Fed Chair Powell, which notably will not include a Q&A session. The VIX and VVIX are on the rise once again. As noted by Nom...
Rapid VIX Drop Signals Potential Market Turbulence Ahead The rapid decline of the VIX, both in absolute terms and compared to volatility across different asset classes, sets the stage for more market turbulence. It's almost as if the recent market turmoil never happened. Despite a nearly 10% drop in recent weeks, the S&P 500 was close to ...
Is the VIX 65 Spike Real? Market Fear Versus Reality Examined The official VIX calculation did indeed report a level of 65.73 on Monday at 8:34 am EST, a figure now being used by many to justify taking long positions in equities. The reasoning behind this is that a significant surge in volatility signaled panic, which has since subsided, thus...
Deciphering Market Mysteries: VIX Decline and Skew Dilemma Spark Intense Debate on Wall Street During the weekend, we delved into a significant enigma that has arisen in the market lately – the continuous decline in implied volatility (VIX) accompanied by historically low skew. The conversation around this phenomenon has evolved over th...