The VIX Is Still Flashing Warnings for Stock Bulls on a Rampage
- Equities and volatility trading are at odds, says SocGen
- Speculators have little conviction in long or short vol bets
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Fear is still rife across volatility markets even as greed powers U.S. stocks anew after their best quarter since 1998, in a historic divergence making life harder for Wall Street speculators.
While the S&P 500 Index has rallied a whopping 40% from the March trough, a measure of implied equity swings known as the Cboe Volatility Index remains elevated at around double its February low.