Volatility of the VIX? It Hints A lot More Selling is Coming
Somewhat of an oxymoron, the VVIX measures the volatility of the VIX and the VIX is the fear gauge of volatility on the SPX. When the VIX goes down, usually bulls cheer this as some sort of bottom, however, that is an amateur move. In reality, the VVIX continues to show very little to no signs of letting up other than simple retracements for more accumulation and therefore, the VIX will likely spike to 90-100+ as I stated a week ago.
On March 11th (shown below), I predicted the VIX would break new records and easily surpass 90 with a reasonable probability of it reaching or surpassing 100.
Remember, just because the VIX decreases this DOES NOT mean equities will rise or that a bottom has formed. This is extremely important and people must not make this crucial error in their analysis.
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Today we heard news of Powell panic cutting rates and entering QE (100 bps cut and 700B in QE) to start. In reality, there has never been in a time in history where rate cuts above 50 bps have ever eased the market - the complete opposite - it induces panic that the worst is on its way.
The next step will be negative rates and yes it will happen. But be aware, when that is announced the US market will tank like you have never seen before.
In the near-term we can expect fresh new lows in the US markets perhaps as early as Monday, March 16th (tomorrow).
- zSplit
On March 11th (shown below), I predicted the VIX would break new records and easily surpass 90 with a reasonable probability of it reaching or surpassing 100.
Remember, just because the VIX decreases this DOES NOT mean equities will rise or that a bottom has formed. This is extremely important and people must not make this crucial error in their analysis.
--
Today we heard news of Powell panic cutting rates and entering QE (100 bps cut and 700B in QE) to start. In reality, there has never been in a time in history where rate cuts above 50 bps have ever eased the market - the complete opposite - it induces panic that the worst is on its way.
The next step will be negative rates and yes it will happen. But be aware, when that is announced the US market will tank like you have never seen before.
In the near-term we can expect fresh new lows in the US markets perhaps as early as Monday, March 16th (tomorrow).
- zSplit
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