The set-up right now is eerily similar to pre-Brexit. As it was back then, VIX was uncharacteristically bid into the FOMC meeting (Tues/Wed), which meant that hedging was becoming increasingly unaffordable. Meanwhile, gamblers were massively complacent relative to the impending Brexit vote. In the event, they walked into a limit down buzz saw, but that didn't stop them from going ALL IN anyway. Why, I can't say...
That was such a bad idea, that now they're going to try it all over again, this time from the other direction, with FOMC this week, the election next week, and a jobs report in between...
Indeed.
