I did a video below the end of this quick note…..but….
I’ve been saying for weeks VOL is not only due to come back (because really it has all summer - except its been summer - considering how stretched things were in risk to the upside), but the timing is lining up for some big moves here ….
The bond market vol started first with the long end just going no bid - which we have been short based on the model….and I’ve been saying STEEPENER is the trade now after flatteners in bonds for over 18months….
You get all the bond market UST/Treasury - Downgrade headlines- blah blah blah but price broke with the cycles before the headlines like it always does….
Here’s 30yr treasuries we were all over this short…
Point being vol in bonds broke out first - getting all the financial headlines… now…I think Equities are next, and you’ve already seen Vol break to 16/17 range on vix I said 2 weeks ago makes sense and is coming….
Now we have a real shot at Vol trending upward - we’re close ….markets are on tilt, we still need to break bigger levels in equities but this is the potential start of more to come.
Guys join us if you want to take advantage of this coming vol ….I go over more in the video of what we are doing and how to join the team…
www.CycleEdgeCapital.com