Powell Panic hits markets

From the Market Ear:

VIXplosion

On December 14, we outlined our latest VIX logic and we concluded: “The saying is that you should buy VIX when you can, not when you have to – but this time it is slightly different – you have to buy it because the trade is simply too attractive to ignore.”

We are seeing VIX put in the biggest up candle since “forever” as people chase protection post the “event”. Note we closed at the highest levels since the August panic.

Panic

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.