The new momentum trade is 2x volatility...
Volume is well above recent average, and Volatility of Volatility is skyrocketing...
Binary Risk Visualized:
JnJ with the VIX
I think we all see where I'm going with this...
No one on Wall Street hedges during Fed week, especially with VIX at these levels...the next 24 hours are the best 24 hours of the entire year...
"FOMC meetings account for 80 percent of annual realized excess stock returns."
It's the Efficient Money Printing Hypothesis in action.
Hence it's very inconvenient that stealth gap 'n crap is taking place right now...
I assume that this 2x volatility (UVXY ETF) short interest is being force undwound...
https://www.quandl.com/data/FINRA/FNYX_UVXY-FINRA-NYSE-TRF-Short-Interest-UVXY
10 DMA
Confirmed. The new momentum trade is 2x volatility...
