Friday, December 1, 2017

Ready To Crash

The S&P 500 just plummeted ~40 points on news that Mike Flynn was directed by Trump to "speak to" the Russians. This is all coming out as part of Flynn's plea bargain to save his son from prosecution. In other words, Big Donny just went under the bus...

What is more interesting from the casino aspect is the velocity of the sell-off. It appears that the one year melt-up into the tax cut has significantly undermined liquidity.





Volatility is heading for backwardation...






Which, accompanied by a doubling in the VIX...



Will trigger force unwind of the short volatility trade...


And to think that the tax vote hasn't even taken place. Yet...