• Background Image

    MarketMap™ 2024 Scenario Planner Issue#13

    May 7, 2024

May 7, 2024

MarketMap™ 2024 Scenario Planner Issue#13

 

The question is one of energy.

This market doesn’t have power, it lacks energy. A friend of mine put it this way, like “…electricity requires a current and voltage, so the market requires volume and volatility.” Today’s market has neither.

I pointed out until VIX gets back above 18, which is relatively high for this era, all news events will be spun for the bullish side. Because fear is repressed.

Many if not most bulls are net short VIX to achieve Alpha. Thus, keeping the perception that a bear market is approaching repressed, and this perceived riskless market if it – when it – turns negative it will catch all the short VIX traders vulnerable to “risk of ruin.” Like it has been done since the crash of 1987, when it was only retail traders naked puts on the averages, that brought several firms down. Today, it’s a bigger issue.

You need to be logged in to view the rest of the content. Please . Not a Member? Join Us
0 Comments

Leave A Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

error: Content is protected !!