Monday, June 13, 2016
Still unable to post images because of Google's "we demand complete control of your computer" policy here at blogger.
So I'll just point out that $VIX has skyrocketed to over 20. This despite SPY hardly being down at all.
If you think it's justified panty-piddling over Brexit, then I dunno how much do you want to be in the market over the next two years, which is how long it'll take for the UK to actually negotiate terms for its exit, which won't be an exit after all because no matter what the proles want, the City is going to want to remain the EU's financial centre, and that'll mean the UK becomes "EU but not EU", just like Quebec's intentions during our own last separatist referendum.
Then again, the wobbly term structure might indicate that people are also buying downside protection against a Trump presidential win.
Who knows? Maybe the lack of equity selling is going to result in another catastrophic selling spree like last August, where ultimately something broke and QQQ was trading at a 10% discount to its underlying.