"Since an increase in perceived tail risk increases the relative demand for low strike puts, increases in SKEW also correspond to an overall steepening of the curve of implied volatilities, familiar to option traders as the "skew"."
Option skew 12 week moving average:
Circled is December 2015 the last FedPlosion:
The divergence between the out-of-the-money skew (crash bets) and the near-the-money VIX (hedging) is the highest since the last fall in Oil in 2014:
Energy (red) with Skew/VIX ratio:
Energy (red) with Skew/VIX ratio:
Money (Out) flow confirms
Breadth confirms
Northern Trust
Sugar
Coal (stocks)
XLE/Oil
Consumer Staples with % bullish (red)
Facebook & Friends
