August Volatility Repeat

September starts with a bang

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Hope everyone had a restful Labor Day. We published a detailed post on Sunday explaining each sector we’re bullish on and reasons why. An excellent way to outperform the market is to focus only on the best sectors. While we continue to like Tech, the market is broadening out so there’s a lot more that could rise.

September starts with a bang

The month starts with a -2% day on SPX (-3% on QQQ and IWM). We continue to be in a precarious state with Sept seasonality, pre-election jitters, and options skew flashing warning signs. Yesterday was effectively a repeat of the August VIX-plosion…

After the first VIX-plosion in early August, the VIX compressed at one of the fastest rates ever seen. At that time we noted flows into volatility funds indicating that investors re-entered t…