The last few days have been "odd" according to one veteran trader and today's moves, with USDJPY plunging, S&P 'steady', and XIV (the inverse VIX ETF soaring) left the same trader exclaiming "what the hell is going on?" More unwinds from equity market-neutral funds? OPEX impacts? Or just the death-throes of a Fed-fueled market gasping its last breaths...
The chaos in equity market-neutral funds continues with weak/strong momo stocks extremely volatile this week...
Carry trades being unwound in size as China bank liquidty stress hits again...
And bonds ain't buying it...
And finally - The VIX ETF complex is completely decoupled today...
In answer to the trader's rant - we don't know, but we suspect we know what happens next.