Can Market Move Higher With Sky-High SKEW?
Big opportunities come with big risks AND the unwinding of those big-risk bets. ;-)
Climbing That Wall Of Worry
Markets are at all-time-highs with many weary and worried about momentum waning.
A sign of this worry is sky-high SKEW - literally hitting a 52-week high of 171.72!
SKEW, as a measure of investors reaching for hedges in VIX, seems to be screaming "HOLD UP!"
But as many contributors here at LaDucTrading have been posting - the options market is reaching for ever-higher levels of calls in SPX and NVDA.
And as I have been posting since September 11th: "This is the market NVDA built."
So is big money expecting a melt-up, or positioning for a 2016 repeat of a Trump win?
Either way, as market grinds higher, with VIX staying bid and SKEW at extremes, we are dangerously approaching levels of a melt-up. This is something I have already warned and written about past few weeks.
So let’s dig in to some of my “tells”…
