Just about two weeks after I wrote an article called “We Are On The Edge”, discussing how, if I had to pick only one trade to put on at the time, it would have been getting long volatility, we saw a massive spike in the VIX to end the week on Friday. Here’s how things looked early afternoon on Friday.
In my opinion, Friday’s trading session marks the beginning of a scenario that I have been predicting would unfold for the better part of the last two years. Here’s what I think is playing out.