Global equities have experienced a tough start to the week but on balance we believe they have further to unfold on the downside with the S&P500 still only 3% below its all-time high, hardly scary stuff with the VIX still noticeably well below its May highs even with the Dow tumbling 725-points last night. The “buy the dip” mentality appears to be alive and well but perhaps a few bad sessions strung together will be enough to unsettle investors increasing the VIX in the process.
Sometimes with investing the hardest action is doing nothing but as the market starts to unfold in-line with our preferred scenario MM is only likely to tweak around the edges as opposed to going “all-in” as we tend to do when we believe a major swing high / low is in place.
MM remains long and bullish the VIX
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