Vol Markets Flash First Warning Since December As NVDA Tests High

Black and Gray Laptop Computer

Image Source: Pexels


One of the sources of fuel for a market rally is volatility selling. However, it's the selling that ultimately leads to the last squeeze higher before the fall. Looking at term structure of volatility and skewness is a way to identify volatility expectations and hedging. Over the past few days, these vol-based indicators have been the most bearish since mid-December of last year. As NVDA retests it's all-time high, this may be a warning to take profits before the next correction.

Video Length: 00:29:56


More By This Author:

These Indicators Signal A Change Coming To The Markets
Three Stocks To Trade For Three Rate Cuts
The Fed Just Delivered Some Irrational Exuberance Of Its Own

Disclaimer: Neither TheoTrade or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.