Sunday, October 19, 2014

Market Uncertainty Has Never Been Higher

The CBOE's VVIX Index, "an indicator of the expected volatility of the 30-day forward price of the VIX"reached extreme levels this week. While all eyes are firmly focused on the to-ing and fro-ing of VIX (the so-called 'fear' indicator), it is the uncertainty of that fear (or greed) that is exploding as VVIX measures. Simply put, the chance of VIX doubling, or tripling, in the next 30 days (which include the final POMO and Fed 'end of QE' meeting), has never been higher.

Market Uncertainty Has Never Been Higher

Chart: Bloomberg

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