Volatility at risk

VIX spike is getting excessive

Regardless whether this is the start of a bear market (and the changing moving average trends on the VIX indicate it could well be), the spike is getting overdone.

I think that if you are shorting this market now because a group of economic eggheads are meeting to conspire about how to stuff the inflation it let out of the bottle back into said bottle, you are taking a great risk. I covered my small caps short (too soon) and today covered a short on IHI, the medical devices ETF. I have also done a lot of selling recently, including today, but also some buying in order to improve the balance and mix of the portfolios.

Oh and cash (and its highest quality equivalents), is a position too folks. IMO it’s too late to short. If the market is going bear shorts can be reestablished on good setups.

Or maybe the world is ending now, as we all bow before the great and powerful…

I just don’t think so. Not quite yet.

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