Since I mentioned it a week ago, volatility has indeed expanded.
In fact, it’s increased 32% today alone.
Implied volatility as observed by the VIX has almost doubled the level it was a week ago.
The Fear & Greed Index is now at the “Extreme Fear” level. VIX is one of the signals it uses to measure the degree of investor panic.
Clearly, the options market has now priced in more expected movement in the range of prices. When I mentioned it a week ago, it implied a 12% range, now it’s 23%.
The S&P 500 stock index is down 3.35% today.
We’ll see if this is enough panic selling today to drive prices low enough to attract new buying demand.
Mike Shell is the Founder and Chief Investment Officer of Shell Capital Management, LLC, and the portfolio manager of ASYMMETRY® Global Tactical.
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