Market euphoria has now lead to a complete and total collapse in volatility.
Volatility rises when people get scared. No one appears to be very scared as volatility is now at an “all time low” ( obviously correlation with markets being near all time highs ) – Get it?
Isn’t this about the time one starts thinking…hmmm….no one is scared, volatility at all time low, markets at all time highs….hmmm…..thinking, thinking….hey! Let’s start looking at buying some volatility around here!
One can only assume we are getting very close to a reasonable bounce in volatility as – markets never change. Just when you think it’s safe…..boom – things head in the opposite direction.
Watch that Nikkei. Watch that AUD/JPY as well USD/JPY and add volatility to your short list ’round these levels.
A lil bit of UVXY here over coming days? I like it.