Authored by Dmitri Speck via Acting-Man.com,
Suspicion Asleep
You have probably noticed it already: stock market volatility has recently all but disappeared. This raises an important question for every investor: Has the market established a permanent plateau of low volatility, or is the current period of low volatility just the calm before the storm?
All quiet on the VIX front… what can possibly happen? [PT] – click to enlarge.
US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday's sharp escalation in the war of words between the U.S. and North Korea. In a broad risk-off move U.S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks.
Two weeks ago we summarized the stunning impact that ECB Predit Mario Draghi's 'whatever it takes' efforts have had on European capital markets in one simple chart...
Via Dana Lyons' Tumblr,
This week has seen yet more examples of poor internals despite new highs in the major averages.
E-mini futures are fractionally lower this morning (0.08%) after Apple's surge helped the DJIA climb above 22,000 for the first time on Wednesday; Global shares declined for the first time in 4 days pressured by tech stocks: Asian shares fell, while Europe pared opening losses to trade unchanged.