Outside the Box: Brace yourself for the coming spike in the VIX

Here we go again. The great volatility crushing of stock markets that happens when markets levitate relentlessly and everyone gets bullish. But don’t let the calm waters during this options expiry week fool you — the calm won’t last.

We’ve seen such periods of volatility compression many times before in the last few years, especially during the historic volatility crush of 2017. What invariably happens is that things get too calm, energy builds up, and we get a big launch in volatility out of the blue.

In our technical view, markets are setting up for yet another spike of size and perhaps a larger spike than most people expect.

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