Sunday, December 6, 2015

Volatility Explosion: Risk Is Binary

The Dow travelled 1200 points this week and ended up essentially flat week over week.

The last time this much back and forth volatility occurred was in August due to the  chasmic divergence between large stocks and the rest of the market...

Equal weight S&P (red) w/cap weight S&P (black)
Equal weight was down on the week...




The Google sledgehammer is in position...



Skynet's best efforts to crush volatility via 1200 point Dow swings, is "not working"...

Weekly realized volatility (Std Deviation):



VIX inverted:






What could go wrong?
The internet fund...