Low VIX Again But Another Shoe Is Bound to Drop

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

In short, the market seems to have completely and utterly absorbed the trade deal failure. Indeed, when we were told how a trade deal was absolutely going to happen, people agreed it would be uber-bullish when it did. And yet, now that it’s totally failed……….zilch. It’s become irrelevant.

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One need look no farther than the VIX to witness this:

We have gone from the “shock event” of the China trade talks collapsing back down to a VIX of 14 in just a couple of weeks.

My spidey-sense is that it’s not going to be this painless. I am frankly stunned and how lackadaisical the market is being about this entire affair, yet as I look at the chart above, I simply don’t think it’s going to hang around at 14 forever with its thumbs in its pockets. Another shoe is bound to drop.

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