The Nasdaq 100 is up 35% from the August low. 525% annualized. Wall Street is ALL IN waiting for the "year-end rally to begin":
Despite Skynet's best efforts to crush volume and volatility, volatility ETFs still show up as top performers over the past 13 weeks. Despite the fact that these are short-term trading instruments that need to be handled with extreme care...
I deem volatility to be a lottery ticket with 100% probability of payoff at unknown maturity. However we are getting some clues that volatility has now entered a bull market.
VIX inverted:
Three month volatility futures: A 15 month uptrend...
The inefficient casino hypothesis: volatility is always low when risk is highest and vice versa...
Original VIX (S&P 100) w/Dow:
[Full disclosure: I am long brick shitting Vol, or in my terms, "hedged against the Idiocracy"]
We don't know on which particular overnight everyone gets priced out of the volatility market all at once, just that it will happen.
And then "this" all comes to an end. Instantly. As capital goes from being dirt cheap to being unavailable.
