Oct 26, 2018

Volatility Crossover

Equity markets have been particularly volatile this month. Surprisingly, cryptocurrency markets have stagnated with low volatility and low volumes. BTCUSD was range-bound, with most of the last month trading in 6400-6500 range.

This morning tweeted this chart -



showing the crossover of volatilities. This is a strange time for markets; reminds me of 10 years ago, when I was talking with other traders about SPX/VIX crossover, that is is we would see SPY below VIX. These values did happen, although not at the same time ( SPY fell below 70, VIX rose above that about 2 months later ). My recommendation is to trade defensively in this market.

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