Historical Volaility on the Rise, Volatility is Still Alive!

Index products are converging with one another and this yet another example that we are about to enter into a period of extreme volatility. Let's take a look at historical volatility over the last 20 years. Notice that all of the "all time highs" in the last 20 years also had just entered a phase of extremely low historical volatility. The current trend of historical volatility is higher. At times we have to look beyond today or this week. Yes the market is drifting higher, but volatility will not show up on your screen until after an event! It's our job to anticipate volatility ahead. That's what we will do in tonight's market analysis.