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Thursday, February 8, 2018

Volatility Returns


Volatility has returned in a big way as was to be expected. SPX was more than 23% wide of the mth kijun sen so this is a mean reversion like we saw in 2016. Still could have at least another 15% to the downside.


VXX ripped higher. The long volatility trade was a no brainer. It took a few goes to get there but it was inevitable given the massive short volatility interest. 


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