Until now former stockmarket crashes matching at least one of each of this criteria:
1. Deep economic crisis / Rezession 2. High currency / FX volatility 3. Sharp rise or fall of Gold prices 4. Geopolitical Crisis 5. Sharp rise or fall of comodity prices 6. Massively higher interst rates (1987: 10%)
Right now not a single one of this criteria is machted in yesterdays and todays sell off.
FX: Quite
If ever there might be any crisis in USA than the Dollar would loose dramatically. The Dollar is up on the record sell off day of the Dow.
Cls.: What ever might had cause this flashcrash is not based on fundamentals. Anyway: Stockmarket History is telling us that just days after the largest drop one of the largest daily gains will occur. Be prepared.
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Compared to past years todays spike was the 3rd highest in VIX history:
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Handelsblatt.com is the largest financial newspaper and following this story based on the research here published on Tradingview.com one to one. This story is published on the global version last night.
Just to compare: US-Investors sold assets for 41 Bn USD in a full month. BRIDGEWATER sold stocks for at least 22 Bn USD just within a few days only. Same time Europe’s Stockmarket is much smaller than the US Stockmarket.
„Investors staged a near-record exodus from US stocks in February
Surely the more important thing is that this break is a huge break of a multi year downward trend in the base. This break may well rebase VIX sloping upwards for next 5 years+
Jupiter1
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You are shorting the vix?
SwissView
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@Jupiter1, i follow the VIX to get an idea about next market moves. I guess the VIX will go down medium term but I would not short this Index using real money. There is no reason to take high risks like this for reatail traders. Pros can short the VIX to hedge shortpositions. This would be a risk free hedge. No matter how high the VIX might go it will come down back where we are in days or at least 1-2 weeks. The VIX yesterday @ 52 was on the 3rd. highest level ever.