“Our indicators tell us, we’re very close to a Lehman-like drawdown,” argues Larry McDonald, a former strategist at Société Générale who now runs The Bear Traps report.
Financial Times, February 20, 2020
*Our institutional client flatform includes; financial advisors, family offices, RIAs, CTAs, hedge funds, mutual funds, and pension funds.
Email firstname.lastname@example.org to get on our live Bloomberg chat over the terminal, institutional investors only please, it’s a real value add.Don’t miss our next trade idea. Get on the Bear Traps Report Today, click here
Nasdaq Volatility Surge, Divergence from VIX
The Chicago Board Options Exchange NDX Volatility Index rose to 38 on Tuesday, an 8+ points premium to the CBOE VIX Index. That’s the widest spread since 2004. The gap between volatility in large-cap high fliers and the broader index has run the gamut in a matter of months, going from negative to non-existent to a multi-year high. Investors are paying-up for downside protection on NASDAQ high flyers.