You’re one little tweet away from a 200-point move in the S&P.
Think about that for a second.
While everyone’s celebrating markets being up 31 handles today, I’m watching volatility futures climb WITH the market.
That doesn’t happen unless something big is coming.
And here’s what most traders don’t get: There’s no technicals when markets start to get wild.
The Volatility Warning Nobody Sees
I’ve been screaming about this since the weekend update, but apparently nobody’s listening. We’re minutes away from full volatility backwardation – and if you don’t know what that means, you’re about to find out the hard way.
Look at the November versus December volatility futures. Only 30 cents differential. For those not versed in volatility land, we’re almost in backwardation – the throes of incredible volatility.
The VVIX – that’s the volatility OF the VIX – is up almost 3% today while the S&P is up half a percent.