XLF Volatility Signals Fears
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XLF volatility signals fear is at an extreme. The implied volatility is telling anyone looking to stay away from the long side of this market. It is also telling us is that no longer risk is here, but here to stay. The XLF IV% is over 30% for the foreseeable future. There is something going on that is much bigger in the financials than the rest of the market. The bond market is doing nothing less than exploding to the upside. The bonds are already trading like Armageddon. Volatility is here to stay for at least the rest of the year and probably into 2017.
